Venezuela’s energy supplier has shut down crypto mining facilities across the country as part of a reorganization of the national crypto department and an ongoing corruption investigation involving the state oil company.
according to to local media reports, crypto mining companies, and tweets of the National Association of Cryptocurrencies of Venezuela, mining facilities were closed in the past days in the states of Lara, Carabobo and Bolívar. It is not clear how many crypto companies are affected. Some crypto exchanges too ordered to stop the operation.
#ULTIMAHOUR It is confirmed that the shutdown of the digital mining farm in Bolívar State is requested. We consider this an arbitrary measure, which is against the interests of private industry.
— Asonacrip (National Association of Cryptocurrencies) (@AsonacripVe) March 25, 2023
The closure of the crypto mining facility is believed to be part of a corruption investigation involving Venezuelan oil company PDVSA and the country’s crypto department.
A statement related to the recent power outages experienced across the entire hashrate infrastructure in the country
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An announcement related to a power outage in all of Venezuela’s hashrate infrastructure. pic.twitter.com/V4IRlLUL0r
– Doctorminer® (@doctorminer_) March 24, 2023
Venezuelan Attorney General Tarek William Saab announced on March 25 that government officials were allegedly conducting parallel oil operations with the help of the national crypto department. Saab noted on Twitter:
“This network uses a conglomerate of commercial companies to legitimize capital obtained from sales through the acquisition of crypto-assets, personal and real estate.”
According to Saab, at least 10 people have been arrested in connection with the investigation, including Joselit Ramirez Camacho who headed the crypto department since it started in 2018 overseeing the crypto tax rules and Petro cryptocurrency of the country. According to previous reports, Camacho was arrested on March 17 during the investigation.
Tarek William Saab: The first case that we want to reveal shows a new corruption plot in PDVSA, number 31, which this time includes the National Superintendence of Cryptoactives (Sunacrip)
— Ministry of Public Affairs of Venezuela (@MinpublicoVEN) March 25, 2023
As of June 2020, Camacho has been listed on the United States’ Most Wanted List. At the time, Homeland Security Investigations issued a reward of up to $5 million for any information that would lead to the arrest of Petro’s supervisor. Authorities said Ramirez had “deep political, social and economic ties” to suspected drug lords, including Tareck El Aissami, the former vice president of Venezuela.
Venezuelan President Nicolás Maduro announced the reorganization of the National Superintendency of Crypto Assets in a decree issued on March 17. Maduro’s government claimed that the decision was intended to protect citizens from the negative effects of economic sanctions, among other reasons.
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