Malaysia's Ministry of Energy has revealed that Tenaga Nasional Bhd (TNB), the state-owned utility company, suffered losses exceeding $1 billion due to illegal electricity consumption by cryptocurrency miners between 2020 and August this year.

In a parliamentary written reply dated Tuesday, the Ministry of Energy Transition and Water Transformation stated that TNB identified 13,827 premises engaging in unauthorized electricity usage for cryptocurrency mining during this period.

The ministry highlighted that power theft for cryptocurrency mining—particularly Bitcoin mining—resulted in economic losses of 4.6 billion ringgit (approximately $1.11 billion). It added that TNB is collaborating with relevant authorities to curb electricity theft.

While Malaysia currently lacks specific laws regulating cryptocurrency mining, tampering with electricity meters or bypassing them through illegal wiring violates the Electricity Supply Act.

Through joint operations involving the ministry, police, communications regulators, anti-corruption agencies, and other enforcement bodies, TNB has seized Bitcoin mining equipment at implicated sites.

"To address this issue, TNB has established a database containing comprehensive records of property owners and tenants suspected of electricity theft linked to Bitcoin mining," the ministry said.

"This database serves a dual purpose: as an internal reference for identifying and monitoring suspicious premises, and as the foundation for operational inspection measures."

The ministry further noted that smart meters are being installed at distribution substations to monitor energy usage in real-time and detect any power manipulation.