Back to the list

Venezuela cracks down on Bitcoin mining amid corruption investigation – Cryptopolitan

source-logo  cryptopolitan.com 24 April 2023 06:34, UTC

Venezuela’s authorities have urged local Bitcoin (BTC), miners, to halt their operations temporarily as they investigate a significant corruption scheme.

This scheme is suspected of being orchestrated by individuals within President Maduro’s inner circle and may have resulted in the loss of up to $20 billion. The scheme involved Petróleos de Venezuela, the national oil and gas company.

Forbes reported that authorities in Venezuela are investigating allegations against cryptocurrency miners and have instructed them to halt the use of their machines for mining temporarily.

The country’s Superintendencia Nacional de Criptoactivos (SUNACRIP) has been reported to have played a central role in liquidating sales following US sanctions against the company, thus making it an important institution in the investigation.

Following the involvement of SUNACRIP in such criminal activities, cryptocurrency exchanges and payment platforms that had registered licences to operate in Venezuela through the organizations have also been requested to halt their operations.

According to social media posts, the National Anti-corruption Police investigated the Bitcoin mining industry to determine any potential connections between BTC miners and corrupt activities within the energy sector.

Additionally, law enforcement officials have taken extra measures to verify whether miners possess the proper authorization and updated documentation required to conduct operations within the country.

In a related report, CoinCoinX, a cryptocurrency exchange in Venezuela, announced on its Twitter account that it would temporarily cease operations within the country.

According to their statement, this decision is due to the current regulatory environment surrounding cryptocurrencies in Venezuela. However, there are speculations that the recent crackdown on Bitcoin mining in the country is the reason behind this move.

The duration of the ongoing probe and when cryptocurrency companies in Venezuela can resume their operations remains uncertain following the recent crackdown on the country’s crypto mining sector.