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Venezuelan Authorities Confiscates Bitcoin Mining Operation

Over 100 mining machines were seized by Venezuelan authorities in a residential area in the central state. According to reports, the mining farm had been operating illegally without the permits required by Sunacrip, the national cryptocurrency watchdog. The national police, Sunacrip personnel, and officers from the national power firm led the seizure.

Authorities seize Venezuelan Mining Farm

Over 100 miners were seized by authorities for operating illegally at a clandestine farm in Miranda, a central Venezuelan state. Local media reports that authorities found the farm because of the strain it was placing on the region’s power distribution system. The police and officials from the Corpoelec national power company and Sunacrip national cryptocurrency watchdog were notified to inspect the farm for any unreported mining activity.

Sunacrip took the mining equipment and dismantled the farm. Although mining cryptocurrency is legal in Venezuela, it requires permits from Sunacrip to ensure that the electrical system is protected against potential strains. Some miners prefer to mine underground due to past events. Sunacrip is not involved in this process and allows for these types of events to occur.

Sunacrip repeatedly called for miners to register with it, offering guarantees to miners.

More Seizures Happening

This isn’t the first time these authorities have taken possession of a state-owned machine. A warehouse in the state also contained 165 mining machines. The warehouse was not licensed to operate in the region. This seizure, like the previous incident, was also a joint operation of Sunacrip officers and police. Sunacrip required that inspections be conducted in Sunacrip officers’ company this year to avoid any irregularities.

In June, over 400 miners were also seized because they did not have the proper permits to transport the machines. At a road checkpoint, the authorities took the mining cargo.

Even registered Venezuelan miners have faced problems with Sunacrip and power company officials before. In strange circumstances, the national power company cut off power supply to Bitcoin miners registered in Carabobo in August. Sunacrip was able to mediate between the affected parties, and miners were reconnected to the power grid after a week.