Argentina Discovers $20M in Crypto Mining Hardware on Livestock Farm

In a significant breakthrough in Argentina’s crackdown on illegal crypto mining, the country’s tax agency, AFIP (Administración Federal de Ingresos Públicos), uncovered approximately $20 million worth of cryptocurrency mining equipment on a livestock farm.

The discovery took place during a raid on a facility that claimed to specialize in livestock and cereal farming, located in the city of Reconquista, within the northern province of Santa Fe.

According to the official government press release, the AFIP found 35 mining rigs alongside critical hardware components like video cards and motherboards hidden within the farm’s premises.

Despite the impressive scale of the operation, the mining hardware was not connected to the internet, meaning that no cryptocurrency mining activity had yet taken place.

This key detail could potentially help the farm’s owners avoid harsher legal consequences.

AFIP’s Aggressive Crypto Mining Crackdown

The discovery on the farm is part of AFIP’s larger, more aggressive strategy to clamp down on unregistered crypto mining operations across Argentina.

In recent months, the tax authority has ramped up efforts to minimize the growth of these illegal mining operations, which are known to bypass tax regulations and consume significant amounts of energy.

Paying the Guptas 615 million before they delivered a single ton of coal raises serious concerns. They used this money to buy a mine, which mine later sold coal back to Eskom. Meanwhile, the NPA has their loyalists undermining every effort to bring them to justice.

— MARK 🖤💚💛 (@Mark03234517) September 23, 2024

Last month, AFIP intercepted more than 340 smuggled mining rigs during a routine inspection of shipping containers disguised as consumer goods.

This haul further highlights the illegal networks involved in bringing crypto-mining equipment into Argentina under the radar, leading to considerable tax losses for the government.

As the popularity of cryptocurrency mining grows, AFIP’s efforts focus on both preventing tax evasion and mitigating the unregulated use of energy.

Crypto mining is notorious for its substantial energy consumption, and the Argentine government has taken steps to regulate this industry to ensure proper taxation and compliance with energy usage standards.

Energy Surge Linked to Illegal Mining Operations

AFIP recently carried out another operation in the Santa Fe province, where a dramatic increase in electricity consumption by almost 800% triggered suspicion.

Upon investigation, tax officers found 96 video cards on the private property, a setup estimated to be worth around $14 million.

The authorities believe that the property owners intended to use the equipment for illegal crypto mining without declaring the purpose to avoid paying taxes.

Given the steep rise in electricity consumption and the unreported hardware, the AFIP intends to impose hefty fines on the property owners, including back taxes owed for the undeclared equipment.

This recent wave of investigations is part of a broader effort to regulate cryptocurrency mining, which is often conducted without oversight, leading to tax evasion and energy overconsumption.

Key Points:

• $20 million worth of mining rigs discovered on a farm in Santa Fe, Argentina.
• 35 mining rigs, including video cards and motherboards, were found but not yet operational.
• AFIP continues to clamp down on illegal mining, uncovering more operations across the country.
• Authorities have seen surges in energy usage, raising red flags for potential unregistered crypto mining setups.

The Argentine government has also been working toward creating a robust framework for crypto-related taxation.

The ongoing debate surrounding the energy consumption of cryptocurrency mining remains a critical issue, with concerns over its environmental and economic impacts continuing to influence policy decisions.

As the AFIP’s investigations continue, it is clear that Argentina is taking decisive action to regulate and control the booming crypto-mining industry within its borders.