Brazil Cracks Down on Massive Illegal Crypto Mining Operation in Rio de Janeiro
Brazilian authorities just pulled the plug on a sprawling underground crypto mining facility in Rio—turns out even digital gold can't outrun the long arm of the law.
The Setup
Operation involved hundreds of rigs siphoning power from the grid—classic crypto move, really. Authorities found the whole operation running in an industrial warehouse that looked legit from the outside but was basically a mining farm on the inside.
The Takedown
Feds moved in after months of surveillance, cutting power and seizing equipment worth millions. No arrests yet, but they're tracking the money trail—because where there's illegal mining, there's usually some creative accounting too.
The Aftermath
Local power company's probably thrilled—that operation was consuming enough electricity to power a small town. Meanwhile, Bitcoin's hashrate barely blinked—because let's be real, one illegal operation in Rio isn't exactly moving the needle for a $1 trillion asset class.
Just another day in crypto—where the line between 'innovative' and 'illegal' gets blurrier by the minute. But hey, at least they weren't trading meme coins.
Illegal crypto mining around the world
Crypto mining, both legal and illegal, has taken off in South America in recent years. Venezuela announced an initiative in May 2023 to shut down illegal miners operating in the country, citing strain on its electricity grid, which is prone to shutdowns.
Meanwhile, Paraguay unveiled a proposed ban in April 2024 to try to stamp out the country's illegal mining operations, as the country also looks to house some of the world’s largest legal crypto mines. The country’s state-owned utility firm claimed it has lost $60 million due to this type of electricity theft.
But illegal mining operations have been consistently cropping up all across the world. Malaysia has reported a 300% upsurge in this type of activity since 2018. This year, incidents have cropped up in countries ranging from Thailand to Kuwait. And just this week, police in Hong Kong arrested two men on suspicion of diverting electricity from care homes for the disabled in order to mine crypto.
