Mexico seizes 300 crypto mining machines allegedly illegally connected to a hydroelectric plant's power supply

Odaily Planet Daily reported that Mexico's federal prosecutor's office, Navy, and Puebla state police seized approximately 300 cryptocurrency mining machines in the mountainous northern area of Tlola, Puebla state. During the operation, they also confiscated transformers, medium-voltage cable terminals, and operational satellite internet antennas. The electricity at the site is suspected to have been illegally tapped from federal hydroelectric facilities powered by the Nuevo Necaxa Dam.

Cryptocurrency mining itself is legal in Mexico, but prosecutors are preparing to file charges related to electricity theft. Francisco Sánchez, Puebla's Secretary of Public Security, stated that investigators traced local illegal mining leads due to the site's proximity to the Nuevo Necaxa Dam and discovered a large-scale power connection.

Money laundering suspicions have not been ruled out, as forensic accountants are tracing the source of funds for the mining machines, and the state government is also examining whether the mining output has been used to launder criminal proceeds. Mexico's Federal Electricity Commission has joined the investigation. From January to July 2024, non-technical losses caused by electricity theft, meter tampering, and illegal connections totaled approximately 6.346 billion kilowatt-hours, valued at around 1.38 billion pesos. (Decrypt)