Crypto Mining Operations in Venezuela Forced to Shut Down

Venezuela‘s energy supplier has shut down crypto mining facilities throughout the country amid an ongoing corruption investigation involving the country’s oil company and the national crypto department. Reports suggest that mining facilities were shut down in the past few days in the states of Lara, Carabobo, and Bolívar, but it is unclear how many crypto firms were affected. Some crypto exchanges were also ordered to cease operations. The closure of these facilities is believed to be part of an investigation of corruption involving Venezuela‘s oil company PDVSA and the country’s crypto department.

Closure of Crypto Mining Facilities

Crypto mining facilities were closed down in several states across Venezuela, with the exact number of firms affected remaining unknown. Alongside this, certain crypto exchanges were also told to cease operations. This is part of an investigation into corruption involving the countrys oil company and crypto department.

Ongoing Corruption Investigations

Reports indicate that Venezuelas attorney general, Tarek William Saab, revealed on March 25 that government officials were allegedly running parallel oil operations with the assistance of the national crypto department. According to Saab, at least 10 people have been arrested in connection with the investigations, including Joselit Ramirez Camacho, who led the crypto department since its inception in 2018. Camacho was arrested on March 17 as part of the investigation.

The US Department of Homeland Security earlier offered a $5 million reward for intelligence leading to the arrest of Petro's boss, Joselit Ramirez Camacho, who has been on the US Most Wanted List since June 2020. Authorities claimed Camacho had “deep political, social, and economic ties” to accused drug lords such as Tareck El Aissami, Venezuela's former vice president.

Reorganization of the National Superintendency of Crypto Assets

Venezuela‘s president, Nicolás Maduro, announced the reorganization of the National Superintendency of Crypto Assets in a decree issued on March 17. Maduro’s administration claimed the decision was intended to protect the country‘s citizens from the negative effects of economic sanctions, among other reasons. It remains to be seen how this reorganization will affect the country’s crypto industry going forward.

As a reminder, WikiBit is ready to help you search the qualifications and reputation of projects in a bid to protect you from hidden dangers in this risky industry!

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