The Venezuelan Ministry of Energy announced that all crypto mining farms in the country will be disconnected from the national electricity grid (SEN, Sistema Electrico Nacional). This measure aims to control the high energy demand from existing mining farms and subsequently provide reliable service to citizens.
Government Announcement
Local media outlet AlbertoHaberleri reported the announcement on May 18 as follows:
The goal is to prevent the high impact on demand by disconnecting all crypto mining farms in the country from the SEN [National Electricity System], thus continuing to provide efficient and reliable service to all Venezuelans. The Ministry reported on its Instagram account.
The announcement came after the seizure of 2,000 crypto mining devices in the country, which is seen as part of the government’s anti-corruption campaign. This action led to the arrest of several officials from state institutions.
Corruption in Venezuela
The National Crypto Assets Inspectorate (Sunacrip) entered a restructuring process following the arrest of Inspector Joselit Ramírez. Ramírez had connections with former Oil Minister and former president of Petróleos de Venezuela, Tareck El Aissami.
During this period, El Aissami faced numerous charges, including treason, embezzlement, abuse of influence, money laundering, and conspiracy.
Venezuela has been experiencing an electricity crisis since 2009. Major blackouts in 2019, which left cities without power for seven days, highlighted the severity of the crisis. Frequent power outages have negatively impacted the country’s quality of life and economic activities.
Additionally, Carabobo state Governor Rafael Lacava confirmed the restrictions on crypto mining farms due to their significant electricity consumption. He urged local residents to report illegal crypto mining operations to prevent power outages.
Rafael Lacava made the following statement:
If you see a neighbor or someone you know operating a farm, tell them to shut it down or report it, because when they turn off the lights, you are deprived of electricity service just to allow someone to make some money.
