Venezuela Regulators Halt BTC Mining Operations Amid Anti-Corruption Investigation
The Venezuelan regulators have ordered Crypto exchanges and BTC miners in the country to halt operations. The halt order came when the country is trying to cope and sort itself out in the recent corruption case involving multi-billion dollars that hit the country.
According to the report, the Venezuelan government is currently investigating a corruption claim that involves about $20 billion. In addition, the members of President Maduro’s cabinet are suspected of planning the criminal scheme which involved looting the country’s oil and gas company (Petróleos de Venezuela).
Furthermore, the authority in charge of the corruption case has urged the crypto firm and BTC miners in the country to temporarily halt operations. Hence, pending the time the case would be solved and the culprit would be exposed, the local Bitcoin miners would be out of operation.
The news about the corruption first surfaced on the internet when Forbes shockingly released that a large scale of BTC miners would temporarily put off their machinery in Venezuela. It explained that the decision was necessary to sort out the alleged corruption case battling the country’s oil and gas sector.
Local Exchanges To Pause Operation Amid Investigation
According to the report, about $3 billion to $20 billion was found missing from the Petróleos de Venezuela’s account. The Petróleos De Venezuela is an oil and gas firm owned by a state in Venezuela. It is the fifth-largest hydrocarbon exporter in the world.
A recent report stated that the ongoing investigation is pointing at some cabinet members of the current presidential administration of the country being responsible for the criminal act.
Meanwhile, the Superintendencia Nacional de Criptoactivos (SUNACRIP) who liquidate sales when the US sanctioned the company was assigned by the authorities to oversee the process. The firm is also part of the companies that deal in all forms of energy utility and BTC mining.
Additionally, all crypto businesses, like exchanges and settlement platforms that are registered with SUNACRIP to halt operations while the investigation proceeds.
According to the latest news, the National Anti-corruption Police have begun to probe local BTC mining companies for any connection between them and the alleged corruption case in the energy company. Also, law enforcers are checking miners for necessary and updated licensing to function in the country.
The SUNACRIP licenses were issued to the crypto firms by Joselit Ramirez and Rajiv Mosqueda the Chairman and the Digital Mining Operations Chief at SUNACRIP. Interestingly, both men were remanded for allegedly having a hand in the Venezuela corruption case.
For now, the regulators are yet to disclose when the crypto institutions can resume work. Also, the duration of the investigation is unknown. Some commenters opined that President Maduro might dissolve the SUNACRIP agency or restructure it after the investigation has been concluded.
The American Department Of Justice Charges
The American Justice Department claimed that crypto might have aided some criminal activities over the years in Venezuela. In 2020, Homeland Security Investigations (HSI) reported that some high-ranking officials in the country, including President Maduro, have led the infamous “Cartel of the Suns.”
The Attorney General of the US, William Barr explained that the notorious group connived with the FARC to illegally import tons of cocaine into America. Furthermore, Barr stated that the group used corrupt local crypto assets firms to run their transactions.
Hence, the temporary halt of operations for crypto exchanges and firms was aimed at stopping the corruption within the Venezuelan administration. In addition, the US regulators are bent on stopping the culprit from using the banking sector to run their illegal activities in the country.
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