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Corruption Probe And National Crypto Reorganization Results In Shut Down Of Crypto Mining In Venezuela

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Mar 27, 2023

As per the latest reports, the energy supplier of Venezuela has cut supplies to the mining facilities in the country for cryptocurrencies.

The reports suggest that the supply cut is because of two main reasons. The first reason is pertaining to the reorganization of the national department for cryptocurrencies.

The second reason is the ongoing investigations that are involving the oil company in the country. A probe has been launched to investigate the matter and see if the entity is involved in corruption.

Local Media is Reporting the Issue

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According to the local media reporting firms in Venezuela, the crypto mining facilities were shut down in the country a few days back.

They also reported that the National Association of Cryptocurrencies in Venezuela had reported the update through Twitter. They confirmed that they had shut down the cryptocurrency mining facilities.

It was also confirmed which major cities were mainly cut off from the mining operations. These cities include Bolivar, Carabobo, and Lara.

It is yet to be reported by the media sources how many sites and operations have been impacted by the recent actions of the government of Venezuela.

The sources have revealed that it wasn’t just the crypto-mining firms that were affected. The government has also ordered some of the crypto exchanges to cease their operations in the country.

The government seems to have ceased the crypto exchanges from operating in the country for an indefinite amount of time.

The reason behind the Closure of Mining Facilities

As per the media sources, the reason behind the shutting down of the mining firms in the country is due to the ongoing investigations.

The government is currently investigating PDVSA, the oil company based in Venezuela, for involvement in corruption. In addition to PDVSA, the government is also investigating the crypto department of the country.

Statement by Tarek William Saab

The attorney general of Venezuela recently made a statement about the ongoing investigation. In the statement released by William Saab on March 25, he stated that their investigations show the involvement of government officials and the crypto department.

He revealed that the allegations involve government officials running oil operations parallel to the government operations. They were doing this with full support from the crypto department of the country.

While generating funds from their oil operations, they were able to turn the black money into white money using a major conglomerate.

The officials had set up a conglomerate that comprised several companies from the commercial markets. These companies were from real estate, personal investments, and crypto assets.

Inquiries are Ongoing

As communicated by the authorities, they have already started catching and investigating several individuals, whom they consider to be involved in illicit activities.

So far, they have arrested more than 10 people and they are being investigated to reveal the entire connection and the network behind these activities.

They have revealed that they are also investigating the crypto department’s lead from the year 2018, Joselit Ramirez Camacho. They have already arrested him for the investigation.

They revealed that he was responsible for overseeing the cryptocurrency operations running in the country as well as overseeing the tax rules.

He was reportedly arrested by the police authorities in Venezuela back on March 17, 2023.

Camacho has been on the “Most Wanted List” of the United States since June 2020 and it seems that Venezuela is after him as well. He currently has a bounty of $5 million on him set by the Department of Homeland Security of the US. S

The announcement by Nicolas Maduro

It was on March 17, when Nicolas Maduro, the president of Venezuela announced that the National Superintendency of Cryptocurrency Assets will be reorganized.

Maduro announced that they want to protect the citizens of the country from any problems that rise due to corruption.

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