Malaysia’s largest electricity utility claims losses exceeding $755 million due to illicit Bitcoin mining since 2018, significantly impacting the energy sector.
Tenaga Nasional Berhad (TNB), Malaysia’s largest electricity utility company, reported losses of RM3.4 billion (over $755 million) in West Malaysia from 2018 to 2023, attributed to unauthorized Bitcoin mining activities. The New Straits Times quotes Akmal Nasir, Malaysia’s deputy minister of energy transition and water transformation.
Nasir acknowledged that while crypto mining accounts for a minor portion of total energy consumption, it has had a notable financial impact on the country and the energy sector.
“These losses, stemming solely from Bitcoin mining which should have contributed to revenue, have escalated into billions.” — Akmal Nasir
Nasir also highlighted that additional losses from illegal electricity connections have led to annual losses ranging from $22 million to $44 million.
In addressing the financial consequences, Nasir stated that citizens could face tariff adjustments or related measures due to these losses. The report also details that nearly $500,000 worth of electrical items, including 349 Bitcoin mining rigs and 1,219 appliances lacking safety labels, have been seized previously.
Meanwhile, Malaysian authorities are intensifying efforts to tackle tax evasion involving digital assets. In mid-June, the Inland Revenue Board (IRB) of Malaysia collaborated with police and CyberSecurity Malaysia for a large-scale operation in the Klang Valley. Authorities accessed crypto trading data from mobile devices and computers to trace digital assets and assess profits, although the extent of tax evasion remains unknown.
