Summary
- Authorities in Mexico, including federal prosecutors and the Navy, conducted a raid in Tlaola, Puebla, resulting in the confiscation of 300 crypto mining machines.
- The mining operation illegally drew electricity from the Nuevo Necaxa hydroelectric dam.
- In addition to the mining rigs, authorities seized transformers, medium-voltage terminals, and satellite internet equipment.
In a recent law enforcement action, Mexican federal prosecutors, the Navy, and Puebla state police confiscated 300 crypto mining rigs from a site in Tlaola, located in the remote Sierra Norte region. This operation was reported to have illegally sourced power from a federal hydroelectric facility, as indicated by the state security ministry on Twitter this Sunday.
Along with the mining rigs, authorities also seized transformers, medium-voltage connections, and operational satellite internet antennas from the property, which serves a municipality of around 20,000 residents. Reports from El País and Mexico News Daily classified the seized hardware as GPUs, suggesting a focus on cryptocurrencies that can still be mined with graphics cards, rather than Bitcoin.
In Tlaola, a property allegedly used for cryptocurrency mining was secured by @FGRMexico, @SEMAR_mx, and the State Public Security of @Gob_Puebla.
Electrical infrastructure, satellite internet, and specialized equipment for asset generation were found... pic.twitter.com/lfgKk3pY3s
— Secretaría de Seguridad Pública (@SSPGobPue) September 6, 2026
While cryptocurrency mining is permitted in Mexico, authorities are preparing to file charges for electricity theft.
State security minister Francisco Sánchez explained that mining operations consume considerable energy and generate significant noise, which often leads operators to remote areas. This was a key factor that raised suspicion, as investigators had been tracking illegal mining activities in the vicinity of the Nuevo Necaxa dam. Sánchez noted, "There was a very large power connection."
He described the location as part of a broader network exploiting hydroelectric resources in the Sierra Norte, mentioning that similar operations are occurring in adjacent states, prompting searches in nearby municipalities.
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Concerns regarding money laundering have emerged, with forensic accountants now investigating the financial backing for the mining equipment. Local media reports indicate that the state government is looking into whether the assets generated at the site were used for laundering criminal proceeds. The Federal Electricity Commission of Mexico is also involved in the ongoing investigation.
The utility reported that non-technical losses, due to theft, meter tampering, and illegal connections, amounted to 6,346 gigawatt hours from January to July 2024, translating to around 13.8 billion pesos ($817 million).
In 2025, authorities dismantled three additional mining operations across Puebla and Tlaxcala, and a mining farm discovered near the same dam last year was reportedly linked to properties owned by the electrical workers' union.
Mexico is not alone in addressing the issue of electricity theft by crypto miners, as similar operations have been uncovered worldwide. In Malaysia, authorities confiscated over 75,000 rigs last year due to power theft, with the utility estimating losses at $1.1 billion, while Brazilian police shut down an illegal mining operation in Rio de Janeiro.