Venezuela Seizes 11,000 Bitcoin Miners and Bans Mining to Stabilize the Power Grid

Due to energy consumption concerns, Venezuela has joined the growing list of countries taking action against cryptocurrency mining.

The Venezuelan government, through its Ministry of Electricity, announced plans to disconnect cryptocurrency mining farms from the national power grid. The goal is to regulate excessive energy usage and ensure stable electricity supply for the population.

As part of this crackdown, over 11,000 Bitcoin mining machines were confiscated. The operation aims to prioritize stable power supply for ordinary citizens. Recently, in Maracaibo, authorities seized 2,000 cryptocurrency mining devices as part of an anti-corruption initiative.

Venezuela frequently experiences power outages, particularly since 2019, significantly impacting residents’ daily lives and overall economic activities. The ban on cryptocurrency mining is part of a broader anti-corruption effort that has led to the arrest of several high-ranking officials, including the former head of the National Superintendency of Crypto Assets.

Governor Rafael Lacava, who oversees most of the industrial parks in Carabobo State, spearheaded actions that resulted in the seizure of these mining devices and the disconnection of undisclosed numbers of cryptocurrency mining facilities.

Venezuela’s decision to ban cryptocurrency mining stems from the ongoing energy crisis, which has caused frequent blackouts and power shortages since 2019. By disconnecting mining operations from the grid, the government aims to alleviate pressure on the power supply caused by energy-intensive activities and prioritize electricity for the general population.

This crackdown on cryptocurrency mining is also linked to Venezuela’s broader anti-corruption efforts. As part of this work, Maracaibo authorities recently seized 2,000 cryptocurrency mining devices. Several high-ranking officials, including former National Superintendency of Crypto Assets head José Litet Ramírez, have been arrested on corruption charges.

Governor Lacava emphasized the importance of public cooperation in detecting and reporting illegal mining operations. He stated that miners cannot continue their activities when ordinary citizens face persistent energy interruptions.

However, it remains unclear whether these measures are permanent or temporary, as the government works to adjust the national power system to generate more energy.

Before Venezuela’s ban, other countries such as China and Kazakhstan had implemented similar regulations or outright prohibitions on cryptocurrency mining due to their substantial energy demands.

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