Venezuela closes crypto mining, exchanges

As part of a restructuring of the nation’s crypto department and continuing corruption investigations involving the country’s oil firm, Venezuela’s energy provider has shut down crypto mining sites around the country.

According to local media sources, cryptocurrency mining firms, and tweets from Venezuela’s National Association of Cryptocurrencies, mining facilities in the states of Lara, Carabobo, and Bolvar have been shut down in recent days.

It is unknown how many cryptocurrency companies were impacted. Furthermore, certain cryptocurrency exchanges were required to suspend operations.

It is thought that the suspension of crypto mining facilities is connected to an ongoing probe of wrongdoing between Venezuela’s PDVSA oil firm and the country’s crypto department.

On March 25, Venezuela’s attorney general, Tarek William Saab, said that government officials were reportedly conducting parallel oil operations with the help of the national crypto department. Saab tweeted the following:

“This network used a conglomerate of commercial companies to legitimize the capital obtained from sales through the acquisition of crypto-assets, personal and real estate.”

According to Saab, at least ten individuals have been detained in connection with the investigations, including Joselit Ramirez Camacho, who commanded the crypto department from its founding in 2018 and oversaw crypto tax regulations and the Petro cryptocurrency. Earlier sources said that Camacho was detained on March 17 during the inquiry.

Camacho has been on the United States’ most-wanted list since June 2020. At the time, Homeland Security Investigations posted a $5 million reward for any information leading to Petro’s detention.

Officials stated that Ramirez had “strong political, social, and economic links” to accused drug lords, including former Venezuelan Vice President Tareck El Aissami.

In a March 17 proclamation, President Nicolás Maduro of Venezuela announced the reform of the National Superintendency of Crypto Assets.

The government of Nicolas Maduro said that the decision was made, among other reasons, to shield civilians from the ill impacts of economic sanctions.