Venezuela Seizes 315 Bitcoin Mining Rigs: Miners Discuss Illegal Confiscation, Police Extortion

The Venezuelan navy has seized 315 Bitmain Antminer S9 bitcoin mining rigs it claims are usually not correctly registered to function within the nation. Though cryptocurrency mining is authorized in Venezuela, miners say they’ve been unfairly handled, citing unlawful seizures of mining tools and police extortion.

Venezuela Seizes Bitcoin Mining Tools

The Bolivarian Nationwide Guard of Venezuela (GNB) introduced through Twitter Monday that it has seized 315 Antminer S9 bitcoin mining rigs within the southern area of the nation. The GNB is without doubt one of the largest divisions of the Nationwide Bolivarian Armed Forces.

The tweet explains that the GNB determined to grab the bitcoin mining tools as a result of the proprietor didn’t have correct registration papers. The case has been forwarded to the Nationwide Superintendency of Crypto Property and Associated Actions (Sunacrip), the crypto regulator appointed by the federal government of Nicolas Maduro chargeable for registering miners.

In response to native information outlet Criptonoticias, that is the primary identified mining tools confiscation by Venezuelan authorities in 2020. The one earlier than this was in September 2019 within the state of Aragua, the place mining rigs had been additionally seized on account of a scarcity of correct registration papers.

Miners Warn of Illegal Seizures and Extortion

Formally, the Venezuelan authorities has legalized cryptocurrency mining, requiring miners to register and acquire crypto mining certificates. Nevertheless, cryptocurrency miners within the nation have repeatedly stated that mining tools has been illegally seized and miners have been extorted by the police. A lot of crypto miners instructed Criptonoticias that “mining cryptocurrencies in Venezuela has grow to be a dangerous exercise,” the publication conveyed, including that some stated police officers have demanded money bribes to miss mining tools they’ve found.

Veteran crypto miner Joan Telo instructed the information outlet that when calculating mining profitability in Venezuela, miners should embody extortion funds and losses from their tools being confiscated. Regardless of crypto mining being a authorized exercise, he added that it “is carried out clandestinely and that inherent prices of migrating the whole operation to a different location must be thought-about, as soon as it’s detected by the authorities.”

What do you concentrate on how Venezuela treats crypto miners? Tell us within the feedback part under.

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