Mexican Cartel Crypto Mining Operation Dismantled in Puebla

Mexican authorities have dismantled a clandestine cryptocurrency mining farm in the mountains of Puebla, seizing over 300 graphics cards and other equipment worth tens of thousands of dollars. The operation near the town of Tlaola is the fourth such illicit facility uncovered in the region since last year.

The mine ran on stolen electricity from hydroelectric power sources, according to a report by Tom's Hardware citing Reuters. Residents of neighboring communities told Reuters they could hear the transformers and cooling equipment from roughly a kilometer away.

The Jalisco New Generation Cartel and other cartels are using crypto mining as a way to launder money, security analysts say. Mexico's cybersecurity firm SILIKN estimates that the use of crypto mining for illicit income rose at least 55.8% last year. The trend is linked to sanctions evasion, with Blockchain analytics firm Chainalysis citing $154 billion in illicit crypto transactions last year.

The Puebla raid adds to a wider crackdown on energy-intensive, unlicensed mining across the region. Similar hidden facilities have been raided in Uruguay, Oman, Brazil, the United States, and Thailand.