ANDE Officials Allegedly Involved in Illegal Bitcoin Mining Farms in Paraguay

Employees of Paraguay’s National Energy Administration (ANDE) have been accused of establishing illegal Bitcoin mining farms across the country. According to local sources, seven ANDE engineers are under investigation for allegedly setting up these unauthorized operations. The national prosecutor’s office, in collaboration with ANDE, is conducting the investigation, according to Bitcoin.com.

Reports suggest that these engineers facilitated illegal connections to the power grid to support Bitcoin mining operations. Felix Sosa, president of ANDE, stated that the organization’s internal audit service is working with the national prosecutor’s office on the investigation. Sosa emphasized that ANDE employees have not handled electrical connections for some time, as these tasks have been outsourced to external contractors.

Since December, ANDE has been combating illegal Bitcoin mining connections, having disconnected over 70 farms illicitly drawing electricity from the grid. This crackdown has sparked criticism from industry experts in Paraguay, who argue that issues like predatory contracts have caused more economic harm to the industry.

Joaquin Morinigo, founder and CEO of Bitcoin and blockchain consulting agency Cryptopy, stated that these allegations are not new. He highlighted on social media:

“Since 2018, we have had reports of corrupt ANDE officials demanding bribes, engaging in extortion, and creating secret connections in various parts of the country. There is a structural corruption problem within ANDE.”

The Paraguayan government plans to use Bitcoin mining to develop more labor-intensive industries by leveraging the energy resources currently sold to Bitcoin miners.