Paraguayan authorities have intensified their efforts to fight illegal bitcoin mining, using innovative techniques including artificial intelligence (AI) and its distribution systems to detect these activities. In less than a week, two new illegal bitcoin mining operations have been closed with over 550 miners seized, causing undetermined damages to the National Power Administration (ANDE).
Paraguay Cracks Down on Illegal Bitcoin Mining: Over 550 Miners Seized
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Paraguay Cracks Down on Illegal Bitcoin Mining Activities
Paraguay is seeking to thwart the illegal bitcoin mining business in its country. Paraguayan authorities have intensified their efforts to crack down on bitcoin mining activities that siphon power from the country’s power grid directly, seeking to avoid paying the electric power fees. According to local news, National Power Administration (ANDE) officials found two bitcoin mining farms using artificial intelligence (AI) software and their distribution maps.
The first of these operations was executed on May 19th in the Paraguari department, where 396 bitcoin miners were seized alongside other equipment that facilitated the conduction of these activities. The second of these seizures was conducted in the Canindeyu department on May 22, where in the same fashion, power measurement equipment was bypassed to obtain energy without paying the fees associated with the mining activity.
At this second site, ANDE officials, police, and the local prosecutor’s office seized two transformers of 1,000 KVA each, which represents 2,000 KVA of power, and 176 Bitcoin mining machines.
ANDE will estimate the damage caused by these operations to the grid and collect stolen energy fees from the responsible, alongside the fines associated with the crimes registered, which include illegal theft of electrical energy, disruption of public service, and sabotage.
These actions are consistent with the recent change of heart of the Paraguayan government regarding bitcoin mining, urging lawmakers to pass a bill imposing harsh penalties for illegal miners. If approved, the proposed regulation would impose jail sentences of up to 10 years, offering ANDE more tools to fight these operations misusing the country’s power capacity.
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