Scams are a common occurrence in cryptocurrency, and there are many scammers in the market today. While there is often legal involvement when these situations happen, that is not the case for one mining farm. In fact, no one even uncovered it before the Brazilian police accidentally fell upon it during a search for a suspected drug trafficker.
In a new report from Zero Hora, which is a Brazilian news outlet, it looks like the local police have officially arrested suspects in a crypto laundering scheme. Even though Bitcoin mining is not common in the area, the police found a total of 25 Bitcoin mining rigs in the house.
The rigs discovered were supported with “sophisticated” software and hardware. The overall value of the equipment alone is $63,000.
In finding the resident of the house, the man said that the building was rented under his name, and that the mining business was his own investment. The actual mining farm was not illegal, but the illicit use of electricity was. According to the police, the owner had stolen the electric power, which kept the rigs going all day long.
Police revealed that the home also had a pistol with an erased serial number, along with a motorcycle that contained replicated license plates. Believing that it is possible that the man was involved with a local organization in charge of drug trafficking and money laundering, the police ultimately took the homeowner into custody. The hardware was seized as well and may have been smuggled from China.
Other news reports show that the man had a substantial criminal history that includes drug trafficking and killing a police officer in the military.
If crypto money laundering is revealed to be true, then it could influence the way that Brazil stands on the whole of their crypto regulations. Still, tighter regulations may be implemented, since there is still proof that crypto mining is coming from illicit electricity sources.
Like what you read? Give us one like or share it to your friends