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Mining

Paraguay shuts illegal bitcoin mines that stole enough power to light a city

By admin
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Paraguay shuts illegal bitcoin mines that stole enough power to light a city

Paraguay has shut down more than 70 illegal bitcoin mines in the past five years, according to the country’s national energy supplier.

Illegal mines in Paraguay reportedly steal up to $60 million worth of electricity every year — enough to light a city, according to the Administración Nacional de Electricidad (ANDE).

The Economist reports that illegal bitcoin miners contribute to an increasing number of blackouts in the country by overloading power lines unable to cope with increased demand.

ANDE has also admitted that seven of its own engineers are under investigation after they were accused of illegally installing crypto mines using the energy provider’s own power transformers.

The Paraguayan Fintech Chamber lobby group says that thanks to a combination of low taxes, predictable politics, and cheap imports of equipment, Paraguay is a mecca for crypto miners.

Paraguay shuts illegal bitcoin mines that stole enough power to light a city

Most of Paraguay’s share of power from the Itaipu dam is directed to Brazil as it vastly exceeds Paraguay’s energy demand.

However, the Economist reports that public anger toward these crypto miners has pushed the government to enact laws that will allow its courts to sentence energy thieves to up to 10 years.

In 2018, 90% of Paraguay’s energy was supplied by the Itaipu Dam. There are 50 bitcoin miners reportedly paying ANDE a tariff so that they can use the spare energy generated from the dam.

Elsewhere, the Malaysian government also claims illegal crypto miners stole $722 million worth of electricity between 2018 and 2023. This is roughly $144 million per year.

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