Summary:
693 miners seized in an illegal operation in Paraguay.
Detection aided by SCADA systems analyzing power consumption.
Operators tampered with power meters, saving 65% on costs.
Estimated losses of $60,000 monthly for the local electricity provider.
Penalties of up to 10 years in prison for energy theft established by law.
The National Power Administration of Paraguay (ANDE) has recently made headlines by detecting and seizing an illegal bitcoin mining operation that hosted 693 miners. This significant enforcement action highlights Paraguay's ongoing battle against illicit cryptocurrency mining activities.
Paraguay's Ongoing Fight Against Illegal Mining
On Wednesday, ANDE inspectors identified a tampered power meter in a shed located in Hernandarias, which led to the discovery of the extensive mining operation. Utilizing Supervisory Control and Data Acquisition (SCADA) systems, technicians were able to analyze the area's power consumption, revealing a dramatic increase in usage. Alongside the miners, a 4,000 KVA transformer was also confiscated.
While some illegal mining setups completely bypass power meters, this particular operation cleverly manipulated the meter, allowing it to record only a portion of the actual power consumption. According to ANDE's report, the meter showed a load of 749.5 kW, whereas the true load was 2,151 kW, enabling operators to save a staggering 65% on operating costs.
ANDE emphasized that this operation underscores their commitment to combatting illegal activities that severely impact local electrical services and the institution's finances. The unauthorized operation was estimated to cause losses of $60,000 each month, which will be subject to penalties as per the law. A recent law passed by the Paraguayan Senate stipulates that individuals involved in such activities may face up to 10 years in prison for energy theft.
In a related case, the Paraguayan justice system has been stringent with energy theft, recently convicting a cryptocurrency farm owner to 18 months in prison for stealing over $1.5 million worth of electricity to mine bitcoin.
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