Brazilian police accidentally discovered Bitcoin mine laundering money

Brazilian police have arrested suspects involved in money laundering involving digital currencies , according to a report published by local news agency Zero Hora.

An accidental discovery
The report states that the State Department of Narcotics Trafficking (Denarc) in Porto Alegre (Rio Grande do Sul) discovered the mining farm while tracking a suspected drug smuggler.
Given that mining is not particularly popular in the region, a cursory police search revealed 25 Bitcoin mining rigs running 24/7, powered by “cutting-edge” software and hardware with an estimated value of around 250,000 reais (about $63,000).
“Not so legal” business
Police eventually tracked down the occupants of the house, a man who claimed he rented the entire building and ran the Bitcoin mining operation as a personal investment. While his actions were not illegal, he was ultimately charged with illegal use of electricity, which police said was used to run mining equipment around the clock.
The report also revealed that during further searches, the police found a pistol with the serial number erased and a motorcycle with a cloned license plate. The police suspected that the man might be from a drug trafficking and money laundering organization, so they detained him. All his equipment was also seized because the police suspected that the hardware was smuggled.
Another news report on the matter stated: The arrested man had a fairly extensive criminal history, including but not limited to drug trafficking activities and the murder of a military policeman.
If the findings do provide evidence that the man laundered digital currency , it could have implications for Brazil’s stance on digital currencies .
Brazil’s Federal Tax Service (RFB) has released a draft document requiring the country’s cryptocurrency -related businesses to provide monthly operational reports. While the draft itself does not imply public recognition of cryptocurrency , it does prove that the Brazilian government recognizes and accepts the operations of cryptocurrency- related companies on its territory.
Evidence that the country has been harbouring crypto money launderers could at least provide authorities with a reason to increase oversight of the country’s crypto industry.
At the very least, real cases of digital currency money launderers could provide a reason for authorities to strengthen their digital currency regulatory departments. (CCN Chinese website)