Mining Farm Seized in Tax Evasion and Money Laundering Case
Authorities in Padua, Italy, have recently seized assets worth €5.5 million in a case involving a mining farm financed through tax evasion. The operation was carried out by the financial authorities, the Padua Public Prosecutor’s Office, and the Special Unit for the Protection of Privacy and Technological Fraud in Rome. The purpose of the seizure was to confiscate the assets and financial resources of two businessmen and their companies who were involved in tax evasion and money laundering.
Tax Evasion and Money Laundering Investigation
The investigation revealed that the suspects simulated service contracts to hide an illegal supply of labor. The contracting companies recruited staff through a consortium company that was not authorized to manage the workforce. Instead, it provided advice and business planning services. The two suspects were found to be directing cooperatives that acted as labor reservoirs for client companies. These cooperatives did not have an independent existence and only charged the consortium for net wage-related costs.
Elaborate Tax Evasion Operation
Part of the profits generated from the tax evasion scheme were suspected to be used to purchase graphics processing units (GPUs) for a mining farm. This facility was used to solve complex mathematical algorithms in blockchain technology. The farm had an annual energy requirement of almost €100,000 and consisted of a management PC connected to over 350 graphics cards. Investigations also revealed virtual wallets linked to the initiator of the scheme, as well as purchases of digital artwork in the form of NFTs.
Hot Take: Crypto Fraud Exposed in Italy
A recent investigation in Italy has uncovered a sophisticated crypto fraud scheme involving tax evasion and money laundering. Authorities seized assets worth €5.5 million, including a mining farm financed through illegal means. The suspects used simulated service contracts to hide their illegal labor supply and recruited staff through unauthorized channels. They operated cooperatives that acted as labor reservoirs for client companies, causing damage to the public purse by not paying taxes and social security debts. Additionally, part of the profits from the scheme was used to purchase GPUs for the mining farm and digital artwork in the form of NFTs. This case highlights the need for stronger regulation and oversight in the crypto industry to prevent such fraudulent activities.
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