Mexican Cartel Crypto Mining Operation Dismantled

Mexican authorities have dismantled a clandestine cryptocurrency mining farm in Puebla, seizing 300 graphics cards and industrial transformers that were illegally drawing on hydroelectric power. The operation near the town of Tlaola is the fourth such illicit facility uncovered in the region since early last year.

The seizure fits a pattern in which cartels use mining to convert and launder illicit income. Security analysts say the Jalisco New Generation Cartel and the Sinaloa Cartel are among those using mining for this purpose, with Mexican cybersecurity firm SILIKN estimating that the use of crypto mining to launder money in Mexico rose at least 55.8% last year.

The facility was running on stolen electricity, and residents of neighboring communities told Reuters they could hear the transformers and cooling equipment from roughly a kilometer away. The operation near the town of Tlaola is the fourth such illicit facility uncovered in the region since early last year.