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The Rio Grande do Sul Police Arrests Suspect in Connection to Laundering Money

The state department of drug trafficking (Denarc) in Brazil has made a significant bust after chasing down a drug trafficker to a house full of bitcoin mining machines. While to the police the latter was unusual, they believe the suspect was laundering proceeds of drugs through bitcoin mining.

At the center of the clandestine mining operation was one man who claimed he was mining bitcoin which isn’t a crime. He further said he had only rented the space for his bitcoin mining operation. However, police suspect he’s washes cash from drugs hence was laundering money. Furthermore, the person arrested is a suspected drug peddler. His clandestine lab had machines running 24 hours and was in a small house in Porto Alegre.

Mining Equipment Collected By Police

While mining crypto isn’t a crime, the suspect was stealing electricity from the grid and will face flagrant robbery charges. The power was used to run 25 linked crypto mining machines whose origin is China. The machines mined different types of cryptocurrency. Besides collecting the mining machines, police also picked sophisticated hardware and software from the house whose value stood at R $250 thousand which is equivalent to $63,000. While all signs indicate the house was only for bitcoin mining, according to the police, this could be a clandestine operation used by drug dealers to launder cash through digital coins. As police dig deeper into the lab’s operation, it’s just a matter of time before their investigations reveal the truth.

While Brazil’s case is under investigations, in the US a jury found two suspects guilty of spreading malware whose attention was to steal credit card and personal info from unsuspecting users. Besides that, the suspects indicated also mined crypto through their victim’s computers without their knowledge. In a similar case still in the US, in Manhattan district, a group of individuals was indicted by the district attorney for laundering millions of dollars via bitcoin all proceeds of selling drugs. Per the attorney files, the group run stores on the Dark Web and sold thousands of counterfeit tablets drugs which were shipped to users. From the look of things, drug dealers together with criminals have found a liking in digital coins due to its anonymous nature. However, as they hide their proceeds in digital currencies, authorities are also catching up to them on their new tricks.