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Argentina is considered one of the most attractive countries for cryptocurrency mining because of cheap electricity and stable internet.
Argentina’s Tax Administration (AFIP) has stepped up surveillance of illegal mining and has uncovered three underground crypto farms in the past seven days. Two of them are located in the city of Cordoba and another in San Juan. The latter was reportedly discovered through a company that delivered mining equipment. The company operated without a license.
Farms in Cordoba were found on the energy trail – miners consumed more than 85,000 kilowatts of electricity, which cost them $ 7,000 per month. One of the farm management companies had an undeclared income of $ 200,000, as well as $ 600,000 invested in mining equipment nowhere.
It is reported that all the equipment found in Córdoba was located in a refrigeration room designed to store fruit. Law enforcers from the AFIP managed to track the addresses to which the mined currency was sent:
“One of the companies conducted about 474 transactions with ether from January 31 to today. They managed to get 137.25 ETH, which is equivalent to $ 217,000. Naturally, they were not declared.”
The cheapness of the electricity steadily flowing to the farms and the speed of the Internet attract small and large mining companies, such as Bitfarms, a mining conglomerate registered on Nasdaq. The company is already building a huge farm that will accommodate more than 55,000 miners.
Earlier this month, the AFIP won a case to confiscate funds from digital accounts, thanks to which the regulator will now be able to block digital accounts and seize taxpayers’ crypto assets.
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