Congratulations To Venezuela - Bitcoin Miners Arrested For Stealing Free Electricity
Another in our occasional series of gobsmacked reports from the land of Bolivarian socialism--Venezuela, the place that sensible economics went to die. The latest is that the authorities there have arrested some bitcoin miners. The charge is apparently that the miners were stealing electricity. But the only reason that people are doing bitcoin mining there, in that land of Bolivarian plenty, is because economic idiocy has made electricity, to all intents and purposes, free. And electricity is the major cost in bitcoin mining.
Venezuelan authorities have arrested four people allegedly involved with a cryptocurrency-mining operation based in a small city about an hour and a half’s drive from Caracas, according to local media reports.
Three men and one woman with ages ranging from 23 to 57 were charged with cyberfraud and stealing electricity, according to Douglas Rico, director of Venezuela’s Criminal Investigations Corps.
The news was initially reported by Criptonoticias, a Venezuela-based news outlet that focuses on cryptocurrencies.
It isn’t clear whether the four paid for the electricity used to power their mining equipment, Criptonoticias reported.
Authorities confiscated 300 mining terminals, according to photos published on Rico’s Instagram account, Criptonoticias reported. The models included Antminer S4s, produced by Beijing-based Bitmain, and SP31 Yukons, manufactured by Israel-based Spondoolies
The village of Vernon Hills is about to join the world of cryptocurrency as officials prepare to sell bitcoins seized from criminal organizations during joint police investigations with federal authorities.
Although police say they can't share specific details, Finance Director Nikki Larson received approval from village trustees late last month to begin the process of selling about $10,000 worth of bitcoins involved in a recent criminal case.
Three action items that allow the conversion to take place were unanimously approved and supporting documents say the FBI agrees with the process.
Vernon Hills will first create an account with Coinbase, a company Larson said is a police-friendly online depository. Trustees also authorized Larson to create a new regular bank account to link with the Coinbase account and sell the bitcoins with proceeds directed to the police department's asset forfeiture account.
"(Bitcoin) is not controlled or issued by any bank or government — instead it is an open network which is managed by its users," according to Coinbase's website. "Much in the way email improved communication by making it fast and cheap, bitcoin is an improvement on existing payment methods which were not designed for the internet era."
Larson said bitcoins sell at prices that fluctuate daily and range between $700 and $900 per coin. She said Vernon Hills will likely undergo the sales process for a second time later this year, as police are in the final stages of another online crime bust.
Kim Christenson, a spokesman for the Vernon Hills police department, issued a brief statement on the matter Feb. 1.
"The Vernon Hills police department is currently working two active investigations in which bitcoins were used by criminal organizations," Christenson's statement reads. "More information can be released once these investigations and asset forfeiture attempts have been completed."
Christenson declined to say how long police have been involved in the cases, what kind of criminal organizations are involved, or what types of crimes are suspected.
"Criminal activities involving bitcoins are primarily focused on 'dark-net markets' and theft, though officials in countries such as the United States also recognize that bitcoins can provide legitimate financial services," Christenson said.
Larson said all money seized during criminal investigations must be used for police-related expenses and cannot go into the village's general account.
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