During a Prison raid in Venezuela at Tocoron penitentiary, the Venezuelan authorities made a startling discovery. They uncovered not only Bitcoin mining apparatus but also an assortment of sophisticated weaponry. This included missile launchers and explosive devices.
This revelation has raised serious concerns about illicit activities within the prison compound. Furthermore, a force of 11,000+ police and military, backed by armored vehicles, forcefully entered the penitentiary. In this operation, they apprehended both the Bitcoin apparatus and the arms cache.
These were previously under the control of the Tren de Aragua cartel. Reported by AFP, this criminal organization had established its operational hub within the confines of this prison. Notably, this hub operated in Latin America for a considerable span of time.
In light of Venezuela’s relentless battle against hyperinflation, coupled with the virtually non-existent electricity costs in its heavily subsidized energy market, Bitcoin mining has garnered substantial popularity. This, in turn, has rendered mining activities within the nation more lucrative compared to global averages.
However, upon viewing an AFP video report, it became evident that a significant portion of these mining devices were antiquated iterations of Bitmain’s Antminers. This discovery casts doubt on the actual profitability of this enterprise.
Cryptocurrency Developments Amid Prison Raid in Venezuela and Power Challenges
Bitcoin mining plays a foundational role in introducing new cryptocurrency units into the economic system. Additionally, it carries a pivotal role in upholding the network’s security.
Moreover, miners employ sophisticated computing systems called ASICs (Application-Specific Integrated Circuits) to solve intricate mathematical problems. This process forms an integral component of Bitcoin’s proof-of-work consensus mechanism.
Due to recurring power blackouts, Venezuelan authorities have taken strict measures against cryptocurrency mining facilities. The nation’s temporary ban on cryptocurrency mining effectively brought an industry that had once thrived within its borders to a halt. This information is according to Bloomberg Línea’s June report.
In March, Venezuelan regulators initially imposed a ban on cryptocurrency mining. This move was spurred by an investigation into an alleged embezzlement operation. It was claimed that cryptocurrency wallets were utilized to divert capital from the state-owned petroleum enterprise, PDVSA.
In 2019, President Nicolas Maduro made public his intentions to underpin the national cryptocurrency, the petro, with reserves of crude oil.
Luxury Prison Facilities and Gang Control Exposed
Remigio Ceballos, the Minister of Interior and Justice, revealed the detention of four penitentiary guards. They are suspected of aiding incarcerated gang members who lived in luxury within the prison’s confines.
Following this discovery, the government decided to relocate all 1,600 inmates to alternative facilities. However, according to AFP’s account, some managed to evade capture during the operation.
The facilities within the prison, all established by the gang, featured a diverse array of amenities. These included a restaurant, an aquatic leisure area, gaming parlors, a dance club, a baseball diamond, and even an on-site menagerie.
Additionally, some inmates’ significant others were also residing within these quarters. However, they were forcibly expelled during the operation.
Nevertheless, the situation was far from convivial, as gang leaders subjugated fellow inmates to conditions akin to forced servitude, as noted by Ceballos.
The trove of confiscated assets further encompassed high-precision rifles, explosive devices, missile launchers, ammunition belts for machine guns, and grenades, according to Ceballos’ disclosures.
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