Venezuelan Authorities Seize Bitcoin Mining Machines and Weapons in Prison Raid
Venezuelan authorities made a shocking discovery during a raid on the Tocoron prison: a cache of Bitcoin mining machines alongside heavy weaponry. Over 11,000 police and soldiers stormed the prison, capturing the Bitcoin machines and weapons from the Tren de Aragua gang, which had been operating out of the prison for years.
Bitcoin mining is popular in Venezuela due to hyperinflation and cheap electricity costs. The country’s heavily subsidized electricity market makes mining operations more profitable compared to the global average. However, it is unclear how profitable this specific operation was as many of the seized machines were older versions.
Energy Blackouts and Crackdowns on Crypto Mining
Venezuelan authorities have been cracking down on crypto mining facilities, especially with frequent electricity blackouts. In June, the country imposed a temporary ban on mining cryptocurrencies, effectively killing the industry that was once promoted in Venezuela. The ban came after an investigation into an alleged corruption scheme involving crypto wallets.
In 2019, President Nicolas Maduro announced plans to back Venezuela’s national cryptocurrency, the petro, with barrels of oil.
Prison Facilities and Seized Weapons
The Tocoron prison had extravagant facilities installed by the gang, including a restaurant, pool, gambling rooms, disco, baseball field, and even a zoo. Four prison guards were arrested for suspected involvement in aiding the gang members. The government evacuated all 1,600 inmates to other locations during the raid.
Gang leaders kept other prisoners in “a kind of slavery,” according to Interior and Justice Minister Remigio Ceballos. The seized goods included sniper rifles, explosives, rocket launchers, bullets, machine gun ammunition belts, and grenades.
Hot Take: Bitcoin Mining and Criminal Activities
This incident highlights the intersection between Bitcoin mining and criminal activities. While Venezuela’s cheap electricity costs make mining profitable, it also attracts illegal operations. The government’s crackdown on crypto mining facilities aims to combat corruption and maintain control over the country’s energy resources. However, it remains to be seen whether these efforts will effectively address the underlying issues that contribute to criminal activities in the cryptocurrency space.
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