Venezuela seized 315 Bitcoin mining rigs: Miners discussed illegal confiscation, blackmailing police

The Venezuelan military has confiscated the 315 Bitmain Antminer S9 bitcoin mining rigs that they claimed were not properly registered to operate in the country. Although cryptocurrency mining is legal in Venezuela, mining companies say they have been treated unfairly, on the grounds of illegal arrest of police mining and mining equipment.

Venezuela captures Bitcoin mining equipment

The Venezuelan National Guard (GNB) announced on Twitter Monday that it has seized 315 Antminer S9 bitcoin mining rigs in the southern region of the country. The GNB is one of the largest divisions of the National Bolivar Armed Forces.

The tweet explains that GNB has decided to confiscate the bitcoin mining equipment because the owner doesn't have the proper registration. The case has been turned over to the Crypto Asset Management and Related Activities (Sunacrip), the crypto regulator appointed by the government of Nicolas Maduro responsible for registering mining companies. .

According to local news outlet Criptonoticias, this was the first confiscation of mining equipment known by the Venezuelan authorities in 2020. The previous time was in September 2019 in the state of Aragua, where mining rigs were also confiscated due to lack of appropriate registration documents.

Mining tools warn illegal arrest and extortion
Officially, the Venezuelan government has legalized cryptocurrency mining operations, requiring mining companies to register and obtain a cryptocurrency mining certificate. However, cryptocurrency mining companies in the country have repeatedly said that mining equipment has been confiscated illegally and mining companies have been extorted by police. Several cryptocurrency mining companies told Criptonoticias that mining cryptocurrencies in Venezuela has become a risky activity, the message was conveyed, adding that some police officials have asked for bribes. cash to bypass the mining equipment they discovered.

Veteran cryptocurrency miner Joan Telo told the firm that when calculating mining profits in Venezuela, miners must include extortion payments and losses from their devices. confiscated. While mining of cryptocurrencies is a legitimate activity, he added that it is done blatantly and the inherent cost of moving the entire operation to another location should be considered by government.

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