The post Illegal Bitcoin Mining Drains Over $100 Million from Malaysian Electricity Provider appeared on BitcoinEthereumNews.com.

Tenaga Nasional Berhad (TNB), Malaysia’s main power utility, has disclosed significant financial losses linked to unlawful Bitcoin mining surpassing 440 million ringgit (roughly $101 million). According to The Star, illicit crypto mining-related electricity theft has been spreading at an alarming rate, putting a 103 million ringgit dent in TNB’s finances alone this year, reported Suhai Rizain of Malaysia’s Criminal Investigation Department. Losses from illicit Bitcoin mining have been rising continuously since 2020, which indicates a heavy load on the electrical supplier. The relatively small loss of 5.9 million ringgit that TNB reported in 2020 increased to 140.4 million ringgit in 2021, 124.9 million ringgit in 2022, and an additional 67.1 million ringgit last year. This pattern underscores a persistent and costly issue for the country’s energy infrastructure. A Costly Strain on Malaysia’s Energy Sector In a July report, TNB highlighted similar figures, noting a staggering $755 million lost due to illegal Bitcoin mining from 2018 to 2023. While Bitcoin mining represents only a minor share of Malaysia’s total energy consumption, Deputy Minister of Energy Transition and Water Transformation Akmal Nasir pointed out that its financial impact remains significant. He emphasized that the illicit nature of these operations exacerbates costs by exploiting and overburdening the power grid. Authorities have recently intensified their response, seizing nearly $500,000 worth of electrical equipment associated with illegal mining setups. Additionally, a crackdown on tax evasion in digital assets has been launched to deter further losses. Tax regulations are also tightening with the Malaysian Inland Revenue Board initiating “Ops Token” this year, targeting crypto tax evaders, after discovering significant revenue leakage from unreported trading profits. The Criminal Investigation Department is committed to investigating the drivers behind these escalating losses, focusing on the sharp increases observed over the past two years. Bitcoin mining without authorization involves siphoning…

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Filed under: News - @ October 26, 2024 9:02 pm