Seized mining rigs in Venezuela run by government?

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Corruption-ridden Venezuela has continued to suffer after trying to maneuver and revamp its current economic situation. Government agencies have begun seizing mining rigs in Venezuela.

Corruption is apparently the reason for seized mining rigs in Venezuela. Miners in the country are being hunted, extorted and arrested by Venezuelan police who carry out the operations for personal benefits. Juan Blanco, a Venezuelan Bitcoin miner, also backed the claims that miners are being intimidated by police officers.

Also, Randy Brito, the founder of bitcoinvenezuela.com in a podcast, revealed that certain stakeholders in the country were taking charge and operating seized mining rigs in Venezuela for themselves. He said that certain political office holder has come out on social media to say they mine bitcoin. Brito said they say it in public without fear as the mining rigs they mine from were seized from citizens.

Corruption, primary reason behind seized mining rigs in Venezuela

The South American country, as reported by several media, is being ravaged by corruption in all sectors. The menace has led to a shortage of food, drugs, human right violation, and inflation. The situation has been traced back to during the administration of Nicolas Maduro’s predecessor, Hugo Chavez.

What the country is currently experiencing was described by Christopher Sabatini, a researcher, as the most awful economic and human crisis in the globe whereby a war was not ongoing. Seized mining rigs in Venezuela are just one example of human rights violations under the current regime.

The economic situation in the country made citizens in the country likewise government turn to crypto for help. The government created its cryptocurrency, Petro, which Venezuelans refuse to accept. Instead, they use Bitcoin, Etherum, and Dash for their daily transaction in place of Petro. Dash core group CEO, Ryan Taylor said the crypto was the most used crypto in the South American country.

Trading in Petros made illegal by E.O. 13827

Reportedly, Venezuela’s oil company, Petroleos de Venezuela S.A. (PDVSA), is pushing the country’s Central Bank to deal with Bitcoin and Ethereum. Aware that the Venezuelan government has a stash of BTC and ETH that it wants to “launder”, the State Department has made trading in Petros, Venezuela’s indigenous crypto, illegal.

The U.S.  State Department spokesman announced that Executive Order (E.O) 13827, as amended, forbids American citizens from transacting in any crypto, that was issued by, for, or on behalf of the former Maduro regime on or after January 9, 2018. Seized mining rigs in Venezuela only serve to exemplify that the disrupting process, when in the hands of a few, reverts back to abuses.

Featured Image by Pixabay

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

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