Revenue Mega Operation Arrests 40 People On Cryptocurrency Mining Companies

A mega-operation by the Federal Revenue Service last Thursday (20) in Argentina arrested 40 people who were on cryptocurrency mining companies that authorities said were clandestine.

In recent months, AFIP, Argentine earnings, has made several raids on mining companies after companies attracted attention with unregulated activities.

To track down these operations, the revenue partnered with power companies, who reported suspected cases of high consumption that does not meet energy standards. For example, farms are unveiled in Brazil’s neighboring country.

Mega Operation Shuts Down Cryptocurrency Miners & Revenue Arrests 40 People

AFIP is knocking on the doors of suspected cryptocurrency mining sites to investigate possible power consumption schemes.

In the mega-operation released last Thursday, Argentine earnings said it was possible in 70 raids to shut down several clandestine cryptocurrency mining companies, in addition to carrying out the arrest of 40 people.

These facilities would even use stolen cables for energy consumption, resulting in an estimated US$2 million energy loss, according to the study. In other words, the energy theft cost more than R$10 million, which is the crime under investigation in the case, which is equivalent to 50 million pesos.

According to the public note of this investigation, clandestine farms are found by crossing energy consumption data, leading agents to the sites to conduct a physical inspection.

“The cross-reference of information from AFIP’s specialized areas allowed us to detect undeclared cryptocurrency farms in different parts of the country based on high electricity consumption.”

Operation was in shed

During the investigation into the mega operation, the officers then found a shed with several racks with mining equipment, which were linked together in operation. There were also materials that were supposed to help reduce the electricity consumption of the equipment, in an effort to disguise energy theft, AFIP said.

All the video cards found on the site were seized by the authorities, who dealt a heavy blow to the clandestine mining industry with power theft. The 40 prisoners must answer for the crime before the Argentine body.

For the administrator of AFIP, Carlos Castagneto, the agency should double down on its investigations against energy theft schemes involving cryptocurrencies, as well as illegal equipment imports without paying taxes due to Argentina.

The country, which is experiencing an economic crisis, wants to carry out more operations against financial fraud that could affect the fiscal part of the government.