Malaysia is facing a worrying increase in electricity theft linked to crypto mining activities. According to the authorities, illegal miners have stolen the equivalent of $722 million worth of public electricity over the past five years. This situation raises environmental and economic concerns in the country.
Exorbitant power consumption for crypto mining
Mining cryptocurrencies, particularly Bitcoin, is an extremely energy-intensive activity. Miners must mobilize significant electrical resources to power the powerful computing equipment required to solve complex calculations. In Malaysia, this demand for electricity has led some miners to turn to theft to power their operations. This phenomenon has highlighted the regulatory and security challenges posed by the cryptocurrency industry.
Malaysian authorities’ repressive efforts
Faced with this situation, Malaysian authorities have stepped up their fight against electricity theft linked to cryptocurrency mining. Police seized and destroyed more than 1,720 mining machines in 2021. Six people have also been sentenced to six months in prison for this crime. Despite these efforts, the problem persists and continues to worsen. The authorities plan to further strengthen surveillance measures and penalties to deter these illegal activities.
Economic and environmental consequences
The massive theft of electricity by illegal miners is having a major economic impact on Malaysia. According to estimates, these activities have cost the national power grid almost 2 million ringgit (423,197 euros). Beyond the financial aspect, this excessive consumption of electricity also raises environmental concerns, as Malaysia still relies heavily on fossil fuels.
