Malaysian Crypto Miners Stole $722 Million Worth of Power Over Six Years

Cryptocurrency miners in Malaysia stole at least RM3.4 billion ($722 million) worth of power between 2018 and 2023, according to a statement from the country’s energy official. This massive theft highlights a growing problem in the Southeast Asian nation, where illegal crypto mining activities have become more widespread.

Detection and Enforcement Challenges

Akmal Nasrullah Mohd Nasir, the Deputy Energy Transition and Water Transformation Minister, explained that these illegal operations often believe they can evade detection due to the absence of meters on their premises. However, energy supply companies have developed various methods to identify unusual energy consumption patterns in specific areas, aiding in the crackdown on these activities.

Government Crackdown on Illegal Mining

The government has made combating electricity theft a top priority. In a recent event, officials disposed of 2,022 seized items worth RM2.2 million, including bitcoin mining rigs confiscated in October 2022. The deputy minister emphasized that alongside combating electricity theft, the ministry is also focused on boosting the generation of green and renewable energy.

The Shift in Global Mining Operations

With China's 2021 ban on all crypto mining activities, many operations have relocated to other countries, including Malaysia, Indonesia, Laos, and Thailand. These Southeast Asian nations are attractive due to their competitive electricity prices, skilled labor, and existing infrastructure. This shift has led to an increase in illegal mining activities in these regions.

Global Bitcoin Production Landscape

Since the bitcoin halving in April, which reduced miner rewards by 50%, many Bitcoin mining firms have expanded their revenues and capacities. As of January 2022, Cambridge University data showed that the U.S. accounted for 37.8% of the global hashrate share, making it the world's largest bitcoin producer. Malaysia controlled about 2.5% of the global share, placing it among the top 10 nations for bitcoin production.

Conclusion: A Call for Sustainable Practices

The significant power theft by Malaysian crypto miners underscores the need for stricter enforcement and innovative detection methods to combat illegal activities. As the global landscape of cryptocurrency mining evolves, it is crucial for countries to balance the growth of this industry with sustainable and lawful energy practices. By prioritizing green and renewable energy sources, Malaysia can ensure a more secure and environmentally friendly future in the digital asset ecosystem.