Bitcoin mining farm was discovered in the southern Brazilian city Porto Alegre accidentally by the police after busting the money laundering scheme. The report by the local Brazilian altcoin news shows that the State Department of Drug Trafficking found a house after following a trail of a suspected drug trafficker.
According to the report from April 23, the DENARC in Porto Alegre discovered a house with a bitcoin mining farm where cryptocurrencies were mined. Crypto activities in this region are not as popular so the police went straight into the house and found 25 solitary Bitcoin mining rigs. All of them ran around the clock and were backed by sophisticated software and hardware which was estimated to be worth about $63,000.
The police also managed to find the resident of the house where they found the bitcoin mining farm. The man who was taken into interrogation claimed to have rented the entire building in order to operate his mining business as his personal investment. Although his operations weren’t illegal, the man was charged with the illicit use of electricity since the police claim that he stole the electric power to run the mining rigs 24/7.
The latest cryptocurrency news also revealed that during the search, the police found a gun with an erase serial number and also a motorbike with cloned plates. It is suspected that the man is on the lookout for drug trafficking and money laundering operations since his bitcoin mining farm was running around the clock. The police took the man into custody and seized his hardware. The hardware was reportedly smuggled from China. The arrested man is also believed to have a long criminal history including drug trafficking and involvement in the murder of a police officer.
If the investigation ends up finding the proof of crypto money laundering, Brazil could drastically change its stance on cryptocurrencies. The Department of Federal Revenue of Brazil published a document in 2019 requiring all the crypto companies to provide monthly reports on their operations. The Brazilian government accepted the operations of crypto firms such as the bitcoin mining farm but all other kinds on its territory. However, the country has a problem with crypto money laundering cases and this could be a reason for the authorities to increase the regulations for the entire sector.
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