Interpol’s Crackdown on Illegal Cryptocurrency Operations
Interpol has revealed significant efforts to combat illegal cryptocurrency operations, resulting in over a thousand arrests and approximately $100 million in assets being seized. In a statement released on Friday, the organization highlighted its collaboration with Angolan authorities, which led to the closure of 25 unauthorized crypto mining facilities operated primarily by 60 Chinese individuals. The equipment confiscated from these operations is valued at over $37 million and is slated for distribution to underprivileged regions in Angola.
Broader Campaign Against Cybercrime in Africa
This initiative is part of a broader campaign targeting cybercrime across various African nations, where authorities have collectively apprehended 1,209 individuals and reclaimed more than $97 million. Zambia has also reported the dismantling of a fraudulent investment scheme that exploited about 65,000 victims, resulting in losses nearing $300 million due to false promises of high returns on cryptocurrency investments.
Legal Implications and Energy Concerns
Angola, home to roughly 39 million people, faces significant challenges related to power distribution, which played a role in the recent crackdown on crypto miners. Although the use of digital currencies is not explicitly illegal in Angola, a ban on cryptocurrency mining was enforced in April 2024 due to the excessive energy demands associated with these operations. A statement translated from a notice issued by the Chinese embassy in Angola highlighted the legal implications:
“The law criminalizes cryptocurrency mining, and the possession of equipment for virtual currency mining can lead to one to five years in prison and confiscation of property.”
Such mining bans are a growing trend as nations express concern over energy shortages and ensure that electricity is accessible to their citizens. Recent instances of enforcement have occurred in regions such as Russia’s Republic of Buryatia, where authorities uncovered 95 illicit mining rigs that were secretly tapping into electrical resources.
Regulatory Landscape in the United States
In the United States, regulations governing cryptocurrency mining vary from state to state. While some areas, like Texas, foster a welcoming environment for crypto mining firms such as MARA Holdings, Riot Platforms, and CleanSpark, others like New York have resorted to a two-year moratorium on proof-of-work mining as a response to environmental concerns.
