The Argentine Tax Authority (AFIP) uncovered three different underground cryptocurrency mining farms last week. The farms were located in San Juan and in the city of Cordoba. Over $600,000 in material was found at just one of these locations, and the high level of energy consumed helped the institution track these farms.
Argentina’s tax authority detects three different clandestine mining farms
Argentina’s tax administration (AFIP) has set its sights on illegal cryptocurrency mining and has already detected three clandestine cryptocurrency farms in the past week. Two of the farms were located in the city of Cordoba and one in San Juan. The last one was identified by the organization because the import of mining equipment was carried out by a company that did not have a license.
The two farms in Cordoba were detected thanks to the high energy consumption that these farms need to operate. According to the authorities, the mining operations used 85,000 kilowatts of energy each month, at an expense of $7,000. One of the companies operating the farms had undisclosed benefits of over $200,000, including $600,000 invested in mining equipment.
In the procedure performed in the province of San Juan, the Argentine tax authority was able to detect the cryptocurrency address that received the crypto mined during the operation. The equipment was located in a refrigerated chamber intended to store the fruit. In a press release, the AFIP explains:
One of the disrupted companies had made 474 transactions in the Ethereum (ETH) virtual currency data chain from January 31 to date, for which it had received 137.25 units of this asset, equivalent to $217,000, which had not been declared.
Mining boom in Argentina
According to analysts, the cryptocurrency mining business has become a lucrative business in Argentina due to the cheap and relatively stable energy supply, and the presence of high-speed internet. This has even placed the country in the crosshairs of international cryptocurrency companies seeking to establish their operations on Argentinian soil.
One such company is Bitfarms, a Nasdaq-listed mining conglomerate that is already building a mega farm in the country that will allow it to power 55,000 miners, expand its mining capacity to its 8 exahash per second (8 EH /s) by the end of the year.
However, the country began eliminating subsidies for electricity provided to cryptocurrency mining companies in February, with Cammesa, the energy wholesaler, quadrupling electricity charges for such operations.
What do you think of the recent discovery of three clandestine cryptocurrency mining farms in Argentina? Tell us in the comments section below.
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