Key Points
- Paraguayan authorities have seized 450 illegal Bitcoin mining machines, bringing the total to over 10,000 this year.
- Bitcoin miner revenue has continued to decline, potentially affecting Bitcoin’s recent price surge.
Paraguay’s legal authorities have recently confiscated a large number of Bitcoin mining machines. These machines were operating illegally and their seizure is part of a broader crackdown on unlawful mining activities.
Crackdown on Illegal Mining
In Ciudad del Este, Paraguay, 450 Bitcoin mining machines were seized from a warehouse in the Caacupemi neighborhood of Hernandarias district. This brings the total number of confiscated mining equipment in the country to over 10,000 in 2021, a figure that matches the tally in Venezuela.
The National Electricity Administration (ANDE) discovered these machines during a raid on the 26th. ANDE has conducted over 70 such raids, positioning Paraguay as a leading country in intercepting illicit Bitcoin mining operations.
Investigations and Complaints
ANDE authorities have found a storage facility that seems to be used for storing equipment and materials for building cryptocurrency mining operations. As a result, the power plant has requested a thorough investigation by the Public Prosecutor’s Office.
Authorities also found equipment that had disappeared from another location. However, a recent operation aimed at a cryptocurrency mining facility failed when the owners, seemingly tipped off about the raid, fled with the valuable ASIC processors before authorities arrived.
Separately, authorities in Hernandarias have lodged 20 criminal complaints related to illegal cryptocurrency mining activities. These investigations have resulted in the seizure of over 10,000 Bitcoin mining machines.
Impact on Bitcoin Mining
Paraguay’s vast hydropower potential, primarily from Itaipu, used to attract Bitcoin miners. However, a government crackdown on illegal mining farms has exposed widespread energy theft and potential official involvement.
The current state of miners is not positive. The daily miner revenue collected has dropped from $53 million to $34 million in the last week. This decline could potentially affect the recent surge in the price of Bitcoin.
