Paraguayan authorities have ramped up their crackdown on illegal bitcoin mining, employing advanced methods like artificial intelligence (AI) and sophisticated distribution systems to detect these illicit activities. Within a week, they have shut down two new illegal bitcoin mining operations, seizing over 550 mining devices and causing unspecified damages to the National Power Administration (ANDE).

Paraguay Intensifies Efforts Against Illegal Bitcoin Mining

Paraguay is actively working to dismantle illegal bitcoin mining operations that drain power directly from the national grid, thereby evading electricity fees. According to local reports, officials from ANDE have discovered two such mining farms using AI software and distribution maps.

The first operation took place on May 19th in the Paraguari department, where authorities confiscated 396 bitcoin miners and other equipment used in these activities. The second operation occurred on May 22nd in the Canindeyu department, where similar tactics were employed to bypass power measurement systems, allowing the miners to use electricity without paying for it.

At this second site, officials from ANDE, along with police and the local prosecutor’s office, seized two 1,000 KVA transformers and 176 bitcoin mining machines.

ANDE plans to assess the damage inflicted on the power grid and will charge the responsible parties for the stolen energy, in addition to imposing fines for crimes such as illegal theft of electrical energy, disruption of public service, and sabotage.

These measures align with the Paraguayan government’s recent shift in stance on bitcoin mining, as they urge lawmakers to enact legislation imposing severe penalties on illegal miners. If passed, the proposed law would introduce jail sentences of up to 10 years, providing ANDE with more robust tools to combat the misuse of the country’s power resources.