Former deputy investigated for alleged illegal Bitcoin mining in Paraguay

An unusual intensive consumption of electrical energy in a property belonging to former Paraguayan deputy Miguel Cuevas, led technicians from the National Electricity Administration (ANDE) to an alleged illegal cryptocurrency farm in the department of Paraguarí, in the south of the country.

According to local media reports, because this type of high consumption is characteristic of cryptocurrency farms, ANDE technicians They sensed that it was a clandestine site for bitcoin mining.

After obtaining a court order, the property was finally raided on May 19. They indicate that at the site the Prosecutor’s Office found all the necessary infrastructure for the operation of a cryptocurrency farm. In that sense, they report the discovery of some 354 bitcoin miners, which were installed in a space valued at USD 1.5 million. The machines They will be referred to the Public Ministry’s warehouse for subsequent investigation and analysis.

Prosecutor Alfredo Ramos Manzur pointed out that the property had been rented by the former deputy to a citizen identified as Ramona Peralta, who has already appointed her legal representatives. In that sense, the lease adds a layer of complexity to the case, since it will be investigated whether it is the former deputy or the current tenant who is responsible for the possible illegal operation with cryptocurrencies.

This is a fact that complicates the situation of former deputy Cuevas, who in 2023 He was sentenced to five years in prison on charges of illicit enrichment and false declaration, which is why most of his assets were confiscated by the authorities. According to the accusations, he amassed an illegal fortune between 2009 and 2019, a period during which he served as governor of Paraguarí and deputy of the same department.

For their part, Peralta’s lawyers affirm that a punishable act of theft of electrical energy was not committed, because the machines were not connected. Although the police officers who guarded the site while waiting for the search warrant, say that those involved They had time to disconnect the appliances from the electrical system.

The case will be investigated under article 173 of the Penal Code, which establishes a sentence of up to three years in prison or fine for the crime of illegal theft of energy.

As CriptoNoticias has reported, clandestine cryptocurrency mining has become a growing concern for the government of Paraguay, alleging the negative impact that illegal consumption of electrical energy has on the distribution network and the million-dollar losses generated to the State.

For this reason, the Legislature is currently evaluating a bill that establishes imprisonment sentences for up to 10 years for those who carry out the activity without permission.

This is a proposal that would deepen the government’s crusade against illegal mining undertaken by the Paraguayan authorities, who intend to pursue and punish those who operate farms with unauthorized energy.

This fact has caused the confiscation of miners to become a common practice in the South American country. Since the beginning of this year, More than 5,000 ASIC miners have been confiscated. Judicial actions have been carried out in at least 17 raids on farms that ANDE has detected, together with security officials.