Mexican authorities raid hidden crypto mine, suspecting power theft and money laundering

Authorities in Mexico uncovered a clandestine cryptocurrency mining operation nestled within the lush, mountainous terrain of Puebla's Sierra Norte region. The discovery took place in Tlaola, a small town with approximately 20,000 residents, where the noise of transformers and cooling systems from the illicit mining farm could be heard from a distance of one kilometer.

Inside the facility, law enforcement apprehended 300 graphics processing units (GPUs), 80 medium-voltage terminations, a transformer, and eight satellite antennas. This particular farm is the fourth crypto mining operation to be seized in the region since the beginning of the previous year, indicating the cartels' growing sophistication in their illicit activities.

The mining operation likely operated by tapping into the nearby Presa de Necaxa hydroelectric dam, drawing power secretly from the grid. This type of mining is particularly appealing to organized crime due to the ease with which they can steal electricity in remote areas with cheap rates. The Cartel Jalisco Nueva Generación (CJNG) and its affiliated group, La Barredora, both have a strong presence in Puebla, making it a prime location for such clandestine operations.

According to Chainalysis, a blockchain analytics firm, illicit crypto transactions in South America surged from $59 billion in 2024 to $154 billion last year, with cartels increasingly using cryptocurrency platforms to launder their ill-gotten gains and fund other illegal activities. As the demand for data center CPUs escalates and chip shortages intensify, drug cartels have turned to cryptocurrency mining to diversify their income and launder money.