Crypto miners steal electricity, fuel crime across Southeast Asia

Cryptocurrency mining operations are increasingly linked to electricity theft and organized crime across Southeast Asia, posing a significant threat to national grids and economic stability. In Malaysia, authorities have identified thousands of premises involved in illegal mining, leading to substantial losses for the national utility company, Tenaga Nasional Berhad (TNB). Between 2020 and 2025, TNB estimated losses around €1.1 billion due to electricity theft for mining purposes.

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In Malaysia, thousands of incidents have triggered investigations into illegal mining for cryptocurrency purposes.

Police in Johor recently raided four rented premises, seizing 71 mining machines that had been operating around the clock. The syndicate had bypassed electricity meters, causing an estimated €14,500 in losses within a month, while generating significant revenue. This case, though relatively small, highlights a growing problem. The Malaysian Energy Ministry reports a sharp increase in such theft cases, describing illegal mining as a serious threat to public safety and the national electricity system.

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This poses a huge problem for the security of electricity resources, economic sustainability, competition, and revenue loss.

Experts note that enforcement efforts are lagging behind due to insufficient legislative preparedness and limited agency capabilities. This is particularly concerning as Malaysia rapidly develops its digital infrastructure. Beyond electricity theft, authorities are uncovering links between illegal crypto mining and other criminal activities, including online gambling, money laundering, and industrial-scale cyber scam networks. The US and UK have even sanctioned Cambodian entities, alleging their involvement in forced-labor scam compounds and laundering proceeds through cryptocurrencies.

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Enforcement has been lagging behind, due to a lack of legislative preparedness and limited agency capability in enforcement and investigation.