Malaysia Lost Over $755 Million Due to Illegal Bitcoin Mining Since 2018

  • Sergey Maga
  • 11 July, 2024 00:56
Malaysia Lost Over $755 Million Due to Illegal Bitcoin Mining Since 2018

Malaysia’s largest electricity utility, Tenaga Nasional Berhad (TNB), reports a loss of over $755 million due to illicit Bitcoin mining activities since 2018. This illegal activity has significantly impacted the country’s energy sector. TNB, the biggest electricity utility company in Malaysia, confirmed that RM3.4 billion (over $755 million) was lost in West Malaysia from 2018 to 2023, according to Crypto.

Akmal Nasir, deputy minister of energy transition and water transformation, highlighted the severe financial repercussions despite crypto mining constituting a small fraction of total energy consumption. He noted that these losses, which stem solely from Bitcoin mining, have escalated into billions, impacting the country’s revenue. 

Additional losses from illegal electricity connections have further strained the energy sector, resulting in annual losses ranging from $22 million to $44 million. Nasir warned that citizens might face tariff adjustments or other measures to address these financial setbacks.

Authorities seized nearly $500,000 worth of electrical items, including 349 Bitcoin mining rigs and 1,219 appliances without safety labels. In mid-June, Malaysian authorities launched a major operation in the Klang Valley to crack down on tax evasion involving digital assets. The Inland Revenue Board (IRB) of Malaysia, in collaboration with the police and CyberSecurity Malaysia, accessed crypto trading data from mobile devices and computers to trace digital assets and assess profits. The extent of tax evasion remains unknown.

This crackdown aims to mitigate the financial impact of illegal Bitcoin mining and ensure compliance with tax regulations. The Malaysian government continues to combat these illicit activities to safeguard its energy sector and revenue. 

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