Mexican federal prosecutors, the Navy, and Puebla state police have confiscated 300 cryptocurrency mining machines during a raid on a property in Tlaola, a remote community in the state’s Sierra Norte region. Authorities allege that the operation was illegally drawing electricity from a federal hydroelectric facility connected to the Nuevo Necaxa dam.
Seizure in Puebla’s Sierra Norte
Besides the mining rigs, law enforcement officers seized transformers, medium-voltage terminals, and functioning satellite internet antennas from the site. Local news outlets El País and Mexico News Daily reported that the machines were primarily GPUs—graphic processing units—indicating the property was likely not being used for Bitcoin mining, but for mining alternative coins that can still be efficiently mined using GPUs.
Mining cryptocurrencies remains legal in Mexico. However, Puebla prosecutors are preparing to pursue charges related to the theft of electricity in this case, due to the unauthorized connection to federally managed infrastructure.
State security minister Francisco Sánchez explained that the high energy consumption and noise generated by these mining operations often drive operators to seek isolated, rural locations. He noted that investigations were prompted by reports of illegal activity near the Nuevo Necaxa dam and by the discovery of an exceptionally large power connection.
Investigators noted that illegal miners “consume a great deal of energy and generate a lot of noise,” prompting the search for operations in remote areas close to hydroelectric infrastructure, according to Francisco Sánchez.
Sánchez described the operation in Tlaola as part of a wider network exploiting the region’s hydroelectric resources. He further stated that similar mining activities are suspected in neighboring regions, with ongoing efforts to trace and dismantle other illicit facilities.
Investigation Expands to Possible Money Laundering
Forensic accountants are now investigating the source of funding for the mining equipment and whether the cryptocurrency mined at the site was used in financial crimes such as money laundering. The Puebla state government confirmed that Mexico’s Federal Electricity Commission—known locally as Comisión Federal de Electricidad (CFE)—is involved in the ongoing investigation.
Between January and July 2024, the Federal Electricity Commission reported non-technical electricity losses totaling 6,346 gigawatt hours, valued at about 13.8 billion pesos or $817 million. These losses stem from theft, meter tampering, and illegal grid connections, reflecting the scope of the problem nationwide.
Mini dictionary: Federal Electricity Commission (CFE), Mexico’s state-owned electric utility, is responsible for generating, transmitting, and distributing electricity across the country.
Global Efforts Against Illicit Crypto Mining
The problem of illegal mining and electricity theft is not unique to Mexico. Globally, law enforcement agencies have intensified efforts to stop unauthorized crypto mining operations hiding in remote locations and diverting large amounts of power.
In Malaysia, authorities have adopted drones and handheld sensors to detect Bitcoin mining using stolen electricity. A Bloomberg report detailed how a special committee—composed of the Ministry of Finance, Bank Negara Malaysia, and utility giant TNB—began targeting illegal operators last month. These efforts led to a shutdown of nearly 2,400 mining setups in a May 2024 crackdown.
Across Latin America, similar incidents have emerged. Mexican authorities dismantled three other mining operations in the states of Puebla and neighboring Tlaxcala in 2025, while a mining farm busted near the Nuevo Necaxa dam in 2023 was allegedly linked to properties owned by the electrical workers’ union.
| Country | Year | Mining Rigs Seized | Estimated Power Theft |
|---|---|---|---|
| Mexico | 2024 | 300 | $817 million (national, Jan-Jul 2024, all non-technical losses) |
| Malaysia | 2023 | 75,000+ | $1.1 billion |
| Brazil | 2023 | Not disclosed | Undisclosed |
In Brazil, police also halted an illegal mining operation in Rio de Janeiro last year, as countries around the world continue to address the significant financial and infrastructural impacts of unlicensed crypto mining.
Utility officials estimate that non-technical electricity losses cost Mexico 13.8 billion pesos in the first half of 2024 alone, underscoring the growing financial impact of illegal activities tied to cryptocurrency mining.
