Authorities in Rio de Janeiro have arrested a man accused of running a round-the-clock crypto mining operation by diverting off-grid electricity. Police say the operation was based in a rented home in the Freguesia neighborhood on Governador Island, where officers found multiple high-performance mining rigs and evidence the property had power without a meter — a likely sign of electricity theft.
According to local police communications, the house was being used exclusively for crypto mining activity that ran 24/7. The alleged operator has been detained on charges related to stealing electricity, a criminal offense distinct from the act of mining itself.
While individual crypto mining remains legal in Brazil, the country’s ruling Workers Party has been pushing to tighten oversight. Lawmakers are advocating that mining be restricted to licensed, regulated entities holding a Digital Miner Authorization License. Authorities in São Paulo have also stepped up enforcement in recent months, signaling a broader national crackdown on illicit energy use tied to mining.
This case is part of a wider global pattern. Governments across South America and beyond — from Venezuela and Paraguay to Malaysia, Thailand, Kuwait and Hong Kong — have reported spikes in illegal mining and related electricity theft, citing strain on grids and substantial revenue losses for utilities.
Why this matters: Illegal mining can overload local power systems, raise costs for residents, and expose operators to criminal penalties. For legitimate miners, tightening rules mean higher compliance requirements and the possible need to secure formal licenses or relocate to regulated facilities.
Source: Decrypt. Read the original coverage for full details.