Brazilian police accidentally discovered a Bitcoin mining farm suspected of money laundering

Brazilian police have arrested suspects suspected of money laundering involving cryptocurrency , according to a report published by local news agency Zero Hora.
An accidental discovery The report, published on April 23, states that police from the National Narcotics Department (Denarc) in Porto Alegre (Rio Grande do Sul) discovered a house where cryptocurrency mining was being carried out while tracking a drug smuggling suspect.
Bitcoin mining is not particularly popular in the area, and police entered the house and found 25 bitcoin mining rigs running 24 hours a day and powered by "sophisticated" software and hardware, with an estimated value of around 250,000 reais (about $63,000).
The police eventually tracked down the occupant of the home; a man who said he rented the entire building and mined Bitcoin as a personal investment. While his actions were not illegal, police claimed he had stolen electricity to run the mining rig 24/7, and the man was eventually charged with illegal use of electricity.
The report also revealed that upon further search, police found a weapon with an erased serial number and a motorcycle with a cloned license plate. Police detained the man on suspicion that he might be the supervisor of a drug trafficking and money laundering organization.
All of his hardware was also seized as police suspected that the cryptocurrency mining equipment had been smuggled out of China.
Another news report on the matter stated that the arrested man had a fairly extensive criminal record, including but not limited to drug trafficking activities and the murder of a military police officer.
If the findings do provide evidence of money laundering using cryptocurrencies , this could have an impact on Brazil's stance on cryptocurrencies . In October 2019, the Federal Tax Service (RFB) of Brazil released a draft document requiring crypto companies in the country to provide monthly operational reports. While the draft itself does not imply public recognition of cryptocurrencies , it does prove that the Brazilian government recognizes and accepts the operations of crypto companies on its territory. (Caiyun Blockchain )