Illegal Bitcoin mining farms in Paraguay: investigations against ANDE employees

Amazingly, it has been discovered that employees of the National Energy Administration of Paraguay (ANDE) have opened branches of illegal Bitcoin mining farms in the country. According to local newspapers, seven engineers from the said institution are under investigation for being involved in running these clandestine operations. The investigation is currently underway by the Public Prosecutor’s Office, which works closely with ANDE.

Allegations against ANDE engineers

According to the allegations, seven ANDE engineers are said to have coordinated additional power connections to power Bitcoin mining. ANDE President Felix Sosa has admitted in this particular case that the institution’s internal audit department is distributing cases on these allegations. Sosa also clarified that ANDE employees have not been involved in carrying out power connections for some time now, as this service is carried out by contractors.

However, the greatest threat to the organization’s existence to date remains the fight against illegal mining.

Since December last year, ANDE has been fighting against illegal Bitcoin mining associations and has shut down more than 70 mines that were stealing unmetered electricity directly from the national grid.

Government vision: Bitcoin mining

The government of Paraguay considers Bitcoin mining as one of the stimulants for industrial development. Bitcoin mining is seen as a way for the government to use the country’s excess energy reserves to build a labor-intensive industry. In this way, the existence of Bitcoin suggests its potential as a mechanism to create a similar growth path for the rest of the economy.

It is also still unclear how Paraguay will deal with these allegations, in addition to the challenges it will face in its efforts to curb corruption problems prevalent in power administrations.

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