An international law enforcement effort, spearheaded by Interpol, has led to the apprehension of over one thousand individuals and the recovery of roughly $100 million in assets, targeting cryptocurrency mining operations and fraudulent activities.
Interpol released a statement on Friday, detailing a coordinated operation with Angolan authorities. This collaboration resulted in the shutdown of 25 unauthorized crypto mining facilities managed by 60 Chinese citizens.
Authorities confiscated equipment valued at over $37 million, which the Angolan government plans to redistribute to areas facing hardship and in need of resources.
The crackdown on mining in Angola was part of a larger cybercrime initiative spanning numerous African nations. This broader effort yielded the arrest of 1,209 individuals and the seizure of over $97 million in illicit funds.
In Zambia, law enforcement agencies uncovered a significant fraud scheme. Approximately 65,000 individuals were defrauded of roughly $300 million after being promised substantial returns on cryptocurrency investments.
Angola, a nation with approximately 39 million residents, struggles with reliable power distribution across its territory. This energy scarcity motivated the crackdown on cryptocurrency miners. While owning digital currencies isn’t inherently illegal in Angola, a ban on crypto mining took effect in April 2024 due to its significant energy consumption.
According to a translated notice issued by the Chinese embassy in Angola in April 2024, the new law makes cryptocurrency mining a criminal offense. “Possession of information, communication, and infrastructure equipment utilized for virtual currency ‘mining’ is punishable by one to five years’ imprisonment and confiscation of equipment,” the notice stated, advising Chinese citizens in Angola to be aware of the mining prohibition.
Energy Concerns Drive Mining Crackdowns Globally
Many countries worldwide have implemented laws or regulations that restrict or completely prohibit cryptocurrency mining activities. These measures are often driven by concerns about straining local power grids and ensuring sufficient energy supply for residents. One recent example is the Republic of Buryatia in Russia, where authorities discovered 95 mining devices and a mobile transformer concealed within a truck, illegally drawing electricity.
In the United States, cryptocurrency mining regulations are determined at the state level. This has created “mining-friendly” regions like Texas, where companies such as MARA Holdings, Riot Platforms, and CleanSpark operate. Conversely, in 2022, New York State imposed a two-year moratorium on proof-of-work cryptocurrency mining activities.
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