Brazil Cracks Down on Illegal Crypto Mining in Rio: Man Arrested for Power Theft

Brazil has joined the list of countries facing a growing problem with illegal crypto mining. Police in Rio de Janeiro uncovered a sophisticated mining operation on Governador Island, where a man was arrested for stealing electricity from an off-grid power source. Investigators in the Freguesia area found a house filled with high-powered crypto mining machines. Although the property had electricity, there was no meter installed – a clear sign of power theft. According to police, the building was rented exclusively for mining purposes, with the equipment running 24/7. The suspect now faces charges of electricity theft.

Legal Mining Under Rising Regulatory Pressure While cryptocurrency mining remains legal in Brazil, President Lula da Silva’s government is pushing for tighter regulations. The ruling Workers’ Party aims to restrict mining to licensed and regulated entities only. This step is designed to protect the country’s power grid and curb illegal activities that strain energy infrastructure. In recent months, police across Brazil have reported similar cases, especially in major cities like São Paulo, where official raids against illegal miners have already taken place.

A Problem That Crosses Borders Illegal crypto mining is a global issue. 🔹 Venezuela – In 2023, the government launched a nationwide campaign to shut down unlicensed mining farms, citing pressure on an already fragile electrical grid.

🔹 Paraguay – In 2024, lawmakers proposed a mining ban after the state energy company reported losses of $60 million from electricity theft.

🔹 Malaysia – Has recorded a 300% increase in illegal mining cases since 2018.

🔹 Hong Kong – Just this week, police arrested two men who secretly mined cryptocurrencies inside nursing homes. This trend highlights how, despite Bitcoin’s halving and reduced block rewards, the profitability of mining continues to attract offenders to illicit practices.

What’s Next? While Brazil officially supports the growth of its digital economy, cases like this prove the country must balance innovation with the protection of its energy network. Illegal mining not only harms utilities but also undermines public trust in the crypto sector.

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