Mexico Seizes 300 Crypto Mining Machines Suspected of Illegal Connection to Hydroelectric Power Supply

Odaily Planet Daily News: Mexico's federal prosecutor's office, Navy, and Puebla State Police seized approximately 300 cryptocurrency mining machines in the mountainous northern area of Huauchinango, Puebla State. During the operation, transformers, medium-voltage cable terminals, and functional satellite internet antennas were also confiscated. Electricity at the site is suspected to have been illegally drawn from federal hydroelectric facilities powered by the Nuevo Necaxa Dam.

Crypto mining itself is legal in Mexico, but prosecutors are preparing to file charges of electricity theft. Puebla State Security Secretary Francisco Sánchez stated that investigators traced local illegal mining leads due to the site's proximity to the Nuevo Necaxa Dam and discovered a large-scale power connection at the location.

Suspicions of money laundering have not been ruled out. Forensic accountants are currently tracing the source of funds used to purchase the mining machines, and state authorities are also examining whether the mined output was used to launder criminal proceeds. Mexico's Federal Electricity Commission has joined the investigation. From January to July 2024, non-technical losses caused by electricity theft, meter tampering, and illegal connections amounted to approximately 6.346 billion kilowatt-hours, valued at around 1.38 billion pesos. (Decrypt)