Venezuelan Authorities Crack Down on Bitcoin Miners as Energy Crisis Deepens
In an effort to address the ongoing energy crisis, the Venezuelan National Power Ministry has implemented a special operation to disconnect all bitcoin mining farms from the national power grid. This move comes as authorities seized more than 11,000 bitcoin miners, aiming to curb the excessive power usage by these high-power customers.
The operation, led by Rafael Lacava, the governor of the state of Carabobo, targets not only bitcoin miners but also other high-power customers connected to the national power grid. Lacava stated that the objective is to disconnect all cryptocurrency mining farms from the electrical system, in order to alleviate the strain on the power supply caused by these activities.
The actions taken by the government are a response to the constant blackouts that the country has been facing due to power generation deficiencies caused by various climate and sanctions-related challenges. Governor Lacava emphasized that it is unfair for bitcoin miners to continue their operations while the general population suffers from continuous energy interruptions.
While it remains unclear whether these measures are permanent or temporary, Governor Lacava announced that more bitcoin mining farms would be disconnected in the future. Additionally, other measures, such as a national executive order to reduce energy consumption by state agencies, are expected to be announced in the coming days.
These recent actions shed light on the cryptocurrency mining industry in Venezuela following the disconnection of several bitcoin mining farms involved in a corruption scandal. Sunacrip, the national crypto watchdog, was implicated in a scheme where sanctioned oil was sold for cryptocurrency. As a result, Sunacrip is currently undergoing restructuring activities and the legality of cryptocurrency mining in the country remains uncertain. The former president of Sunacrip, Joselit Ramirez, and the former president of state-owned oil company PDVSA, Tareck El Aissami, have been apprehended and are now in the custody of national authorities.
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