National Power Administration ANDE Employees Allegedly Involved in Setting up Illegal Bitcoin Mining Farms in Paraguay

National Power Administration (ANDE) employees have been accused of participating directly in setting up illegal bitcoin mining farms in Paraguay. According to local sources, seven engineers of the institution would have been installing bitcoin farms across the country as the prosecutor’s office is carrying out this investigation with ANDE’s cooperation.

Seven ANDE Engineers Involved in Setting up Illegal Bitcoin Mining Farms in Paraguay

State officials would be participating in organizing and deploying illegal bitcoin mining farms in Paraguay. According to local reports, seven engineers employed by the National Power Administration (ANDE) in Paraguay would be involved in organizing illegal connections to power bitcoin operations in Paraguay.

Felix Sosa, President of the ANDE, clarified that the inner audit unit of the institution is verifying and organizing a probe in the organization. All related information is being delivered to the national prosecutor’s office for further investigation. Nonetheless, Sosa stated that ANDE employees were not in charge of executing electrical connections since some time ago, delegating this function to third-party contractors.

ANDE has been in a battle against illegal bitcoin mining connections since December, having disconnected over 70 farms siphoning unmetered power directly from the grid. This has created a narrative criticized by industry insiders in Paraguay, stating that other issues, like the existent “vulture contracts” caused more economic damage to the industry.

Joaquin Morinigo, founder and CEO of Cryptopy, a Bitcoin and blockchain consulting agency, stated that these allegations are not new, with reports linking ANDE with illegal connections existing since some time ago. On social media, Morinigo stressed:

Since 2018 we have had reports of corrupt ANDE officials asking for bribes, extorting and creating clandestine connections in different parts of the country. ANDE has a structural corruption problem.

The Paraguayan government has declared that it intends to use bitcoin mining as a bridge, projecting the development of a more labor-intensive industry using the energy resources now sold to bitcoin miners.