In Chile, a routine drug bust took an unexpected turn when the country’s investigative police unit (PDI) uncovered that the suspects were not only involved in illegal drug activities but were also operating a fully-fledged Bitcoin mining operation.
According to a report by local media outlet El Mostrador, on September 6, the Anti-Narcotics Brigade for Santiago’s Metropolitan Region Southern Area conducted an operation at a property in Santiago, located in the La Cisterna neighborhood. This was the third operation targeting the group. During the operation, law enforcement confiscated 36 kilograms of marijuana, an ecstasy pills printer, 43 grams of ketamine, and an unexpected computer setup.
In one of the rooms at the property, authorities discovered a collection of interconnected machines. Law enforcement called in the Cybercrime Brigade, which confirmed that it was a Bitcoin mining operation.
Eduardo Gatica, the head of the Anti-Narcotics Brigade, stated, “This is an unprecedented event. This is the first time drug trafficking has been directly linked to cryptocurrency mining.”
Why bitcoin mining?
Authorities confiscated 19 mining machines, although only ten were operational. According to Luis Orellana, Santiago’s Cyber Crime Unit Chief, the local power grid couldn’t support all 19 machines mining simultaneously.
Officials suspect that the mining setup was used for money laundering purposes although they emphasize cryptocurrency mining is not illegal. It is alleged that the detained individuals were using their drug trafficking proceeds to purchase machines. Then they channel funds into their mining operation and convert Chilean pesos into BTC.
Prosecutor Carlos Yáñez Díaz of the Metropolitan Region’s High Complexity and Organized Crime Office described the connection between illegal activities and Bitcoin mining as “a novel” method.
This incident is not the first time Chilean authorities have encountered cryptocurrency in criminal activities. El Mostrador reported a case where an organized crime syndicate known as the Tren de Aragua. The crime organization was found in possession of approximately $4 billion (around USD 4.5 million) in digital assets.
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