Venezuelan Authorities Escalate Crackdown on Bitcoin Mining, Confiscate Additional 6,000 Miners
The Venezuelan government is intensifying its campaign against bitcoin mining. In a joint effort, Venezuelan authorities, including local law enforcement, intelligence officials, the state-owned power company Corpoelec, and the National Power Ministry, have conducted two new operations in different states of the country, resulting in the seizure of over 6,000 miners.
The initial operation took place in the Portuguesa state, where authorities confiscated 5,995 bitcoin miners that had been disconnected from the power grid, effectively preventing their future connection. Furthermore, in a separate operation conducted in the Cojedes state, 293 miners were disconnected and seized, along with energy connection equipment.
These actions are part of a larger plan announced by the National Power Ministry to disconnect all bitcoin mining operations in order to alleviate the strain on the power system caused by these machines. The country is currently facing an energy crisis, resulting in frequent blackouts in various regions. It remains unclear whether this ban will be lifted once the power crisis is resolved or if it will become permanent.
Previous reports indicate that by May 20th, over 11,000 bitcoin miners had already been disconnected and seized in the Carabobo state, one of Venezuela’s industrial hubs. With the recent operations, the total number of miners disconnected has now surpassed 17,000.
Venezuela was once at the forefront of cryptocurrency and mining regulation. However, the government’s stance towards the industry has shifted since the intervention of Sunacrip, the national cryptocurrency regulator, and the arrest of Joselit Ramirez, its former director. It is alleged that Ramirez played a key role in facilitating unregistered sales of sanctioned Venezuelan oil for cryptocurrency, resulting in an internal embezzlement and money laundering scheme worth $20 billion, which is currently under investigation.
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