ANDE Engineers Accused of Orchestrating Illegal Bitcoin Mining Operations in Paraguay
Reports have emerged suggesting that government officials have been involved in the establishment and operation of illegal bitcoin mining farms in Paraguay. It is alleged that seven engineers employed by the National Power Administration (ANDE) have played a role in facilitating unauthorized connections to power bitcoin operations across the country.
Felix Sosa, President of ANDE, has confirmed that an internal audit is currently underway within the institution, with all relevant information being provided to the national prosecutor’s office for further investigation. However, Sosa has stated that ANDE employees have not been responsible for executing electrical connections for some time, as this task has been outsourced to third-party contractors.
Since December, ANDE has been actively disconnecting over 70 farms that have been illegally drawing power from the grid. However, some critics within the industry argue that issues such as the so-called “vulture contracts” have caused more economic harm than these illegal bitcoin mining operations.
Joaquin Morinigo, founder and CEO of Cryptopy, a Bitcoin and blockchain consulting agency, claims that these allegations are not new, as there have been previous reports linking ANDE to illegal connections. Taking to social media, Morinigo emphasized:
“We have been receiving reports since 2018 about corrupt ANDE officials demanding bribes, engaging in extortion, and creating secret connections in various parts of the country. ANDE has a deep-rooted corruption problem.”
The Paraguayan government has expressed its intention to leverage bitcoin mining as a stepping stone towards developing a more labor-intensive industry, utilizing the energy resources currently being sold to bitcoin miners.
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