Corruption in Paraguay: Senator States Illegal Bitcoin Mining Farms Pay up to $500,000 to Operate Underground

Salyn Buzarquis, a Paraguayan senator, blasted the National Power Administration of Paraguay (ANDE), stating that high-ranking officials charged illegal bitcoin mining farms for operating underground. Buzarquis stated these unnamed officials collected up to $500,000 in bribes monthly and called for the resignation or interrogation of ANDE’s President Felix Sosa on this matter.

Senator States National Power Administration of Paraguay (ANDE) Officials Receive Bribes to Allow Illegal Bitcoin Farms to Operate

Senator Salyn Buzarquis has uncovered an alleged corruption scandal involving high-ranking officials of the National Power Administration of Paraguay (ANDE) in connection with illegal bitcoin mining farm operators. Buzarquis stated that these unidentified officials, with the knowledge of Felix Sosa, president of ANDE, are collecting bribe payments from several illegal bitcoin mining farms operating in the country, allowing them to continue mining underground.

In a Senate session, Buzarquis stated:

Senior managers of ANDE, with the complicity of their officials, bill an average of 500 thousand dollars in bribes for theft of energy from the Paraguayan people with illegal cryptocurrencies.

The senator remarked that this corruption scheme had to be done with Sosa’s knowledge due to its size and scope. “You’re not going to tell me that the president of ANDE doesn’t know. You are not going to tell me that you do not realize when your energy is being stolen in real time,” he assessed.

ANDE issued a release rejecting these statements, stressing that the state company was compromised in the fight against energy theft. The release declared:

This administration has been characterized by installing a frontal combat in the pursuit of this type of punishable acts, especially facilities that carry out cryptomining activity illegally.

Buzarquis called for the resignation of Sosa or an interrogation of the president in the Senate to answer these issues regarding this subject. Last week, ANDE announced an increase in power tariffs applied to legal cryptocurrency mining operators in Paraguay, raising these by up to 14% and causing the rejection of these companies.

Earlier reports also referred to the involvement of ANDE employees in this kind of corruption scheme since 2018.