Paraguay Hits New Milestone in Illegal Bitcoin Mining Crackdown

Paraguay has hit a new milestone in its illegal crypto mining crackdown, equalling the tally of Bitcoin (BTC) mining rigs seized in Venezuela.

Per Criptonoticias, the Paraguayan authorities have now seized over 10,000 ASIC miners this year from illegal operators.

Crypto Mining Crackdown: 450 ASIC Rigs Seized

The National Electricity Administration (ANDE) has thus far instigated more than 70 raids on suspected Bitcoin mining farms in Paraguay.

This means that Paraguay is now keeping pace with a crackdown in the fellow Latin American nation of Venezuela.

Caracas has cracked down on mining in the wake of a wide-ranging clampdown on government corruption.

Paraguay, however, says that its crackdown is aimed at stabilizing grids, many of which are in danger of overloading.

The media outlet explained that the latest raid has seen the Prosecutor’s Office in Ciudad del Este order the seizure of 450 ASIC rigs.

The rigs were not connected to a local power grid. Instead, they appear to have been in storage, in a warehouse in the Hernandarias district of Alto Paraná.

💥 Illegal crypto mining operators in Malaysia have stolen $723 million worth of electricity between 2018 and 2023.#Bitcoin #Mininghttps://t.co/jyukjSUWgS

— Cryptonews.com (@cryptonews) July 11, 2024

Rigs Were ‘In Storage’ Following Previous Raids

ANDE said that the warehouse was a “storage site for equipment and materials used for the operation of cryptocurrency farms.”

The Public Prosecutor’s Office believes the equipment may have been “from another facility” in nearby Santa Mónica.

The case appears to be linked with a “failed” raid in the same area, where miners allegedly emptied an illegal farm of ASIC rigs prior to an investigation.

Hernandarias appears to have become a hotspot of illegal BTC mining activity. The Paraguayan authorities have filed 20 criminal cases in the district this year.

Bitcoin mining has become a hot issue in Paraguay, which is famed for its abundance of hydroelectric power.

Some advocates claim that mining could benefit the Paraguayan economy greatly. At present, the nation gives away much of its surplus power or sells it at discounted rates to neighboring countries.

A recently formed group of industrial players has hit out at new energy rates for miners, claiming that the move could “kill off” the sector.

The group added that this would likely hurt Paraguay’s standing in the international business community.

It said the death of the nation’s BTC mining sector would cost the nation $1.5 billion and jeopardize “hundreds” of jobs.