Key facts
- Mexican authorities seized 300 crypto mining rigs in Tlaola, Puebla.
- The operation illegally tapped into power from the Nuevo Necaxa dam's hydroelectric complex.
- Investigators were alerted by reports of illegal mining in the remote region.
- Forensic accountants are investigating potential money laundering and the hardware's funding.
- Similar electricity theft by crypto miners has been reported in Malaysia and Brazil.
Mexican authorities have seized approximately 300 crypto mining rigs from a property in the remote Sierra Norte region that was illegally drawing power from a federal hydroelectric complex. The operation, conducted by federal prosecutors, the Navy, and Puebla state police in Tlaola, also included the confiscation of transformers, medium-voltage terminals, and satellite internet antennas.
State security minister Francisco Sánchez stated that the operators' search for isolated locations due to the high energy consumption and noise generated by mining, coupled with proximity to the Nuevo Necaxa dam, alerted investigators to a significant illegal power connection. Prosecutors are preparing charges for electricity theft, and forensic accountants are investigating the funding of the hardware to determine if proceeds of crime were laundered.
The Federal Electricity Commission is involved in the probe. The utility reported non-technical losses from theft and illegal connections totaling 6,346 gigawatt hours, valued at approximately 13.8 billion pesos ($817 million), between January and July 2024. This incident follows similar raids on illegal mining operations in Mexico and internationally, including Malaysia and Brazil, where authorities have seized tens of thousands of rigs for power theft.