Venezuelan authorities unearthed a Bitcoin mining rig during a raid at the infamous Tocorón prison in Aragua state.
Known as a stronghold for the notorious crime syndicate Tren de Aragua, the prison has been the epicenter of various illicit activities, including the lucrative business of Bitcoin mining.
Dark Corners of Bitcoin Mining in Venezuela
Bitcoin mining, a profitable enterprise requiring substantial investment in hardware and electricity, has found its way into the darkest corners of society—and Venezuela.
Bitcoin mining profitability in 2023 is razor-thin. But by using the prison’s electricity, it’s likely that the criminals had better margins than most.
The crackdown on Tren de Aragua, a powerful force in Venezuela’s criminal underworld, involved an army of 11,000 men. The raid revealed more than just the typical contraband. Among rocket launchers, grenades, and bullets, Bitcoin mining rigs were discovered, a testament to the pervasive influence of cryptocurrency.
LatAm Bitcoin Ambassador for Bitfinex, Javier Bastardo proclaimed:
“There were bitcoin miners in one of the most dangerous places in Venezuela”
His concluding point, however, was a reminder that:
“Bitcoin is an open network. For friends, and enemies.”
The Tocorón prison, notorious for its overcrowded and dangerous conditions, surprisingly houses a mini-zoo, swimming pool, and other facilities. The discovery of Bitcoin miners in such a place highlights the extent of cryptocurrency’s reach.
A similar incident occurred in Chile, where authorities discovered a drug trafficking ring operating Bitcoin mining.
A Trend of Negative Crypto Sentiment
In related news, Banco de Venezuela, the country’s largest bank, recently fell victim to a ransomware attack. Reports indicate that attackers used the LockBit ransomware, known for encrypting victims’ files and demanding a ransom in cryptocurrency.
Despite the attack, the bank’s electronic services continue to function normally, offering some reassurance to its over 21.7 million account holders.
Read more: Top 5 Flaws in Crypto Security and How To Avoid Them
However, the possibility that the attackers may have seized valuable information remains a looming threat. If a leak occurs, the sensitive data could be made available on the dark web, exposing bank users to various types of cyberattacks, including phishing, unauthorized account access, and potential extortion.
These incidents paint a grim future for the crypto industry in Venezuela. As the country grapples with the infiltration of Bitcoin mining in its prison system and the fallout from the ransomware attack on its largest bank, regulators’ sentiment towards cryptocurrency is understandably deteriorating.
The challenge remains to navigate this digital frontier without falling prey to its darker elements.
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