The Swedish Tax Agency, known as Skatteverket, has uncovered a significant tax evasion scheme involving crypto mining firms, leading to a demand for over $90 million in unpaid taxes. The investigation, spanning from 2020 to 2023, revealed widespread misappropriations and misleading practices by 18 crypto mining companies.

According to the agency's findings, these firms exploited loopholes in tax regulations by providing inaccurate business descriptions to evade value-added tax (VAT) on taxable operations. Additionally, they circumvented import taxes on mining equipment and income tax on mining revenue.

In response to these findings, the Swedish Tax Agency has issued demands totaling over 990 million Swedish krona ($90 million) in taxes owed by the crypto mining companies. This includes unpaid VAT amounting to 932 million krona ($85.4 million) and tax surcharges of approximately 57.9 million krona ($5.3 million).

While some of the mining firms have appealed against the tax assessments, the administrative court has upheld the appeals of only two companies, rejecting the rest. Adjustments have been made to the demanded amounts based on the court's rulings.

The crackdown on tax evasion comes amid growing scrutiny of the crypto mining industry's environmental impact and regulatory compliance. In recent years, Sweden has emerged as a hub for crypto mining operations, with companies like Hive Digital Technologies establishing data centers powered by renewable energy sources.

In November 2023, Hive Digital Technologies expanded its presence in Sweden by acquiring a commercial property and a data center in Boden. This move aligns with the company's commitment to environmental sustainability and energy efficiency, as it plans to utilize "green" energy to power its operations and increase Bitcoin production.

Hive Digital Technologies operates data centers in Canada, Sweden, and Iceland, leveraging renewable energy to mine digital assets such as Bitcoin. However, despite efforts to promote sustainable practices, the crypto mining industry continues to face regulatory challenges and scrutiny from tax authorities worldwide.