Mexico Seizes 300 Crypto Mining Machines Tapped into Hydroelectric Power

Significant Seizure in Puebla

Mexican authorities, including federal prosecutors and the Navy, have seized 300 cryptocurrency mining machines from a site in Tlaola, Puebla. This operation was reportedly powered by illegal electricity sourced from the Nuevo Necaxa hydroelectric dam.

Alongside the mining rigs, the authorities confiscated additional equipment such as transformers, medium-voltage terminals, and satellite internet devices. Reports indicate that the seized machines were primarily graphics processing units (GPUs), suggesting a focus on mining cryptocurrencies that are compatible with such hardware.

Security officials highlighted the extensive power connections used at the site, prompting a deeper investigation into suspicious mining activities in the region.

Electricity Theft Charges Loom

While cryptocurrency mining is legal in Mexico, authorities are preparing to press charges related to electricity theft. Francisco Sánchez, the state security minister, noted that the high energy consumption and noise from mining operations often lead them to remote locations, which has raised suspicion. Investigators have been monitoring illegal activities around the Nuevo Necaxa dam, where the mining operation was located.

Broader Investigations Underway

In addition to the seizure, forensic accountants are examining the financial sources behind the mining equipment, with concerns about potential money laundering. Local reports suggest the state government is investigating whether profits from the operation were linked to criminal activities. The Federal Electricity Commission of Mexico is also participating in the ongoing probe.

From January to July 2024, the commission reported non-technical losses from theft and illegal connections amounting to 6,346 gigawatt hours, equating to around 13.8 billion pesos ($817 million). Previous operations in Puebla and Tlaxcala were dismantled, with some linked to properties owned by the electrical workers' union.

Globally, authorities are tackling similar issues of power theft associated with cryptocurrency mining, with significant seizures reported in countries like Malaysia and Brazil, highlighting a widespread problem in the industry.