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Rio Police Uncover Alleged Crime Group Crypto Mining Operation

Rio Police Uncover Alleged Crime Group Crypto Mining Operation

Rio de Janeiro Civil Police found a crypto mining operation with roughly 30 computers in an abandoned lot this week. The setup ran on a clandestine power connection from a utility pole and used high-capacity fans and remote-monitoring hardware. Investigators are checking whether Brazil's Comando Vermelho crime faction used it for money movement or laundering.

The Stolen Power Setup

Police discovered the computers running at 1.5 kW each, drawing about 45 kW total. That burns roughly 32,400 kWh monthly. It avoided $6,400 in electricity costs at $0.20 per kWh. The mining farm ran exhaust systems and had remote monitoring gear. There's no word on what coin was mined or if any crypto got cashed out.

Comando Vermelho's Growing Rackets

One of Brazil's two largest crime groups, Comando Vermelho controls territory from favelas to the Amazon border. They've branched into illegal gold mining near Peru and a secret ride-hailing app in Vila Kennedy. It pulls in up to $200,000 monthly. This mining operation fits their pattern. They use stolen power to cut costs. Mining only works with free or dirt-cheap electricity.

Electricity Theft's Toll

Brazil's ANEEL regulator says energy theft cost the country $2 billion in 2024. Rio de Janeiro ranked among the worst states for these losses. The abandoned lot setup shows how criminals game the system. They skip paying for power entirely. That's critical for any mining venture to turn a profit. Malaysia's utility lost over $1 billion to similar crypto miner thefts between 2020 and August 2025.

Police Crackdowns Continue

Brazil's Federal Police seized $14 million in crypto last year from drug trafficking and money laundering cases. A May 2025 national operation hit 16 states with 165 search warrants targeting criminal factions. Chainalysis' 2026 report confirms illicit networks now use crypto infrastructure more often. But this lot's investigation remains open. Police haven't confirmed the mining group's identity or whether they moved the crypto off-site.