Venezuelan Bitcoin miners have been urged to cease their operations amid a massive anti-corruption investigation temporarily. The nation’s authorities are looking into a potential $20 billion corruption scheme suspected of involving the national oil and gas company Petróleos de Venezuela.
According to Forbes, large-scale BTC miners in Venezuela have been forced to turn off their machines as part of the investigation. The country’s Superintendencia Nacional de Criptoactivos (SUNACRIP) played a role in liquidating sales following US sanctions against the company, making it a central institution in the investigation. Other cryptocurrency businesses, including exchanges and payment platforms with SUNACRIP licenses, have also been required to halt operations.
Investigations have accused leaders of President Maduro’s political movement, known as Chavismo, of involvement in the scheme. The National Anticorruption Police has reportedly started inspecting domestic bitcoin mining firms to investigate potential links between them and the corruption leaks in the energy sector. Law enforcement agents are also checking whether miners have the necessary authorizations and up-to-date documentation to operate in the country.
Many of the licenses issued to cryptocurrency entities were given by Joselit Ramírez and Rajiv Mosqueda, the Chairman and head of digital mining operations at SUNACRIP, respectively. Both men are under custody for allegedly participating in the scheme to steal from Venezuela’s energy affairs.
It is unclear when Venezuelan crypto entities can resume operations, and the length of the investigation remains unknown. Some speculate that President Maduro may restructure SUNACRIP or create a new regulatory agency from scratch.
The US DOJ Charges
The US Department of Justice has also claimed that cryptocurrencies played a role in other illegal activities in Venezuela in recent years. Homeland Security Investigations suggested that many high-ranking Venezuelan officials, including President Maduro, have acted as leaders of the notorious “Cartel of the Suns,” which abused locals and corrupted domestic institutions to facilitate the importation of massive quantities into the USA.
Attorney General William Barr has announced that the US is focused on rooting out the extensive corruption within the Venezuelan government. He added that the United States would not allow corrupt Venezuelan officials to use the US banking system to move their illicit proceeds from South America or further their criminal schemes.
The investigation highlights the potential risks of cryptocurrencies and their anonymity, which could make them an attractive tool for illegal activities. The Venezuelan government’s actions underscore the need for a clear regulatory framework to prevent the misuse of digital assets. With cryptocurrencies continuing to gain popularity, governments worldwide must establish a regulatory system that protects investors and prevents criminal activities.