Mexican Cartels Move into Cryptocurrency Mining

Mexican authorities uncovered a secret cryptocurrency mining operation in a remote mountainous area of the state of Puebla that may have been used by organized crime for money laundering. Police found approximately 300 graphics processing units, dozens of power terminals and satellite antennas at the site.

Investigators are also looking into suspicions that the facility was illegally drawing electricity from a nearby hydroelectric plant.

According to security analysts, this is further evidence that Mexican cartels are expanding their activities from drugs and extortion into financial crime. Such cryptocurrency farms make it possible to generate virtual assets that can then be used to launder the proceeds of crime.

Electricity is the biggest expense in cryptocurrency mining, so operations that steal power from the grid can become extremely profitable. Four such facilities have been discovered in the vicinity of Puebla since last year, and authorities are investigating whether others are operating in the region.

(Reuters, mja)