The utility giant told FMT that from the 610 cases it detected in 2018, the number has shot up to 1,043 cases in 2019 and 2,465 cases in 2020.
Bitcoins are a form of digital currency awarded to computers that solve a series of complex mathematical problems, and the first network of computers, or “miners”, to solve the puzzle is rewarded with bitcoins and network transaction fees.
The world’s largest cryptocurrency by market value, the price of bitcoin has risen sharply over the past year and hit US$50,000 last month thanks to the growing acceptance of the digital payment by major companies and interest by institutional investors.
But bitcoin mining machines use electricity costing hundreds of thousands of ringgit for their operations, and the past few weeks, have seen a barrage of bitcoin mining power thieves making headlines after police busted their operations.
“Among others, the high energy use of bitcoin mining networks is related to the computer hardware, the complexity of solving the puzzle and the energy consumed for non-IT infrastructure – such as cooling and lighting – all of which run for 24 hours,” explained TNB.
“TNB has been regularly conducting raids on premises of power theft activities and, in recent months, has been stepping up this effort by working with the police, Energy Commission (EC) and local councils to nab power thieves, especially among bitcoin miners.
“The high number of cases reported in recent weeks is a result of the success of the joint raids with these agencies and authorities.”
National problem
TNB lost about RM8.6 million to electricity theft after police in Johor smashed a bitcoin mining operation in the state last month, with 1,746 bitcoin mining machines seized from 21 premises. Johor police chief Ayob Khan Mydin Pitchay later said electricity theft linked to bitcoin mining cost Johor TNB about RM90 million last year alone.
Also last month, Melaka police confiscated 700 computer servers running on stolen electricity to mine bitcoins for two months, with police estimating TNB’s losses at about RM648,000.
In Sarawak, police crippled a cryptocurrency mining operation in Miri which was operating for over six months at five shophouses. Police expect Sarawak Energy Bhd (SEB) to lose RM4.4 million because of it.
Police in Penang and Perak have also reported arrests related to electricity theft linked to bitcoin mining over the past two weeks.
After the bust in Melaka, deputy police chief Shahrul Lalli Masduki told Bernama that based on TNB’s investigation, electricity consumption was estimated in excess of RM324,000 a month but the bill registered under the premises showed just around RM10 a month.
Police had previously said such premises were located in shophouses in secluded areas which were renovated to provide better ventilation before illegally tapping into the power supply by tampering with meters or bypassing them.
“This is at the expense of the security and reliability of supply for the public at large,” said TNB.
“The irresponsible act of these illegal connections to conduct bitcoin mining compromises the integrity and stability of electricity supply.”
It warned that recurring electricity supply interruption due to system breakdowns could lead to disruptions in business and cause inconvenience to the public and also lead to fire.
TNB, which has stepped up surveillance to detect premises suspected of electricity theft and illegal connection, warned that any individual who commits electricity theft is liable to a fine not exceeding RM1,000,000 or to a jail term not exceeding 10 years, or both.
In addition, whoever commits such an offence may be charged for theft or mischief under the Penal Code. To date, it said, nine out of 57 raids had resulted in charges under the Penal Code.
Between November last year and February, 22 joint operations have been conducted with the EC, police and local councils involving 123 premises in Peninsular Malaysia. From that, 54 arrests were made for theft of electricity.
“TNB, in cooperation with the EC and police, will continue to ensure the stability and integrity of the nation’s electricity supply (so that it) is not compromised by unscrupulous bitcoin miners,” it said.