The country’s recurring power shortages and a temporary embargo on cryptocurrency mining have heightened scrutiny of such endeavors, especially in the wake of a corruption scheme involving crypto wallets.
In a targeted operation, Venezuelan authorities confiscated Bitcoin mining machines and a cache of heavy weaponry, including rocket launchers, from Tocoron prison, aiming at the Tren de Aragua gang
The gang-administered prison, equipped with lavish amenities like a restaurant, pool, and even a zoo, witnessed the arrest of four implicated prison guards, while some inmates managed to elude capture during the operation. Over 11,000 police and soldiers, supported by tanks and armored vehicles, led the assault on the facility.
Bitcoin mining machines have gained traction in Venezuela due to hyperinflation and nominal electricity costs. However, a substantial portion of the confiscated Bitcoin mining machines appeared to be older models of Bitmain’s Antminers, raising questions about the operation’s profitability. These Bitcoin mining machines, reliant on specialized computers known as ASICs, play a crucial role in minting new coins and upholding network security.
With Venezuela grappling with recurrent power disruptions, authorities have escalated efforts to curb cryptocurrency mining operations, including a temporary ban instituted in March after an investigation into an alleged corruption scheme involving crypto holdalls and state-possessed oil painting establishment PDVSA.
The Interior and Justice Minister Remigio Ceballos disclosed the arrest of four prison guards suspected of aiding the gang
Although the government successfully relocated 1,600 inmates, some managed to escape. The gang-administered prison boasted a spectrum of facilities, including a restaurant, pool, gaming areas, disco, baseball field, and even a zoo. Furthermore, the raid unearthed additional weaponry, including sniper rifles, explosives, ammunition belts, and grenades. According to Ceballos, gang leaders subjected other prisoners to a form of “slavery.”
This latest development introduces a fresh layer of complexity to Venezuela‘s stance on cryptocurrency mining, amidst previous expressions of interest in cryptocurrencies and plans to back the national Petro with oil reserves.
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