Police in Paraguay seized 2738 units of mining equipment from illegal crypto farms in Salto del Guaira after discovering unauthorized connections to the power grid. This incident was the result of using an artificial intelligence-based system by Paraguay’s National Energy Administration (ANDE), which analyzes electricity distribution and helps detect cases of theft.
Since the beginning of May, ANDE’s neural networks have detected two illegal crypto farms. As a result, damages worth $146,000 per month due to electricity theft were identified. Charges were brought against the guilty parties on four criminal counts based on this data.
Paraguay, known for its cheap energy provided by the Itaipu Dam on the Paraná River, is a popular location for crypto mining. However, despite the attractive conditions for miners, the country is considering a bill that could prohibit the creation and operation of cryptocurrency farms. The bill also includes a ban on the storage and marketing of crypto assets.
Currently, major mining companies like Bitfarms and Marathon Digital continue their operations in Paraguay, and Tether, the issuer of the USDT stablecoin, has also invested in the region’s mining infrastructure in November 2023. While the bill is under consideration, authorities are actively combating illegal operations to maintain control over energy resources and prevent financial losses.
