Paraguay Shuts Down 70 Illegal Bitcoin Mines as Public Anger Grows

Illegal mines in Paraguay reportedly steal up to $60 million worth of electricity every year — enough to light a city, according to the Administración Nacional de Electricidad (ANDE).

Paraguay has shut down more than 70 illegal bitcoin mines in the past five years, according to the country’s national energy supplier.

The mines reportedly steal up to $60 million worth of electricity every year — enough to light a city, according to the Administración Nacional de Electricidad (ANDE).

Illegal bitcoin miners contribute to an increasing number of blackouts in the country by overloading power lines unable to cope with the increased demand, The Economist reports.

ANDE has also admitted that seven of its own engineers are under investigation after they were accused of illegally installing crypto mines using the energy provider’s own power transformers.

The Paraguayan Fintech Chamber lobby group says that thanks to a combination of low taxes, predictable politics, and cheap imports of equipment, Paraguay is a mecca for crypto miners.

However, public anger toward these crypto miners has pushed the government to enact laws that will allow its courts to sentence energy thieves to up to 10 years, The Economist reports.

In 2018, 90% of Paraguay’s energy was supplied by the Itaipu Dam. There are 50 bitcoin miners reportedly paying ANDE a tariff so that they can use the spare energy generated from the dam.

Elsewhere, the Malaysian government also claims illegal crypto miners stole $722 million worth of electricity between 2018 and 2023. This is roughly $144 million per year.

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