Miners and exchanges in Venezuela will remain closed as the government attempts to deal with a multibillion-dollar corruption scandal.
According to reports, Venezuelan authorities have urged local Bitcoin miners to temporarily cease operations while they investigate a massive corruption scheme that could have diverted as much as $20 billion.
Those within the inner circle of President Maduro are suspected of orchestrating the crime involving Venezuela’s national energy and gas company, Petróleos de Venezuela.
Large-scale Bitcoin (BTC) miners in Venezuela are reportedly being forced to shut down their operations after an alleged corruption scandal rocked the country, as reported by Forbes. Petróleos de Venezuela, a state-owned oil and natural gas corporation and the fifth-largest exporter of hydrocarbons worldwide, is missing between $3 billion and $20 billion, according to estimates.
Some of the leaders of President Maduro’s political movement, known as Chavismo, were implicated in the conspiracy, according to investigators.
The Superintendencia Nacional de Criptoactivos (SUNACRIP) is at the center of the process because it played a role in liquidating the company’s transactions following US sanctions. It was also one of the most prominent organizations concerned with all forms of energy consumption and Bitcoin mining.
During the investigation, the authorities have also ordered other cryptocurrency businesses, including exchanges and payment platforms with SUNACRIP licenses, to cease operations.
Recent posts on social media platforms disclosed that the National Anticorruption Police had begun inspecting domestic Bitcoin mining companies to determine if they were connected to corruption breaches in the energy sector. Agents of the law have also verified that miners have the proper authorization and documentation to operate in the country.
Notably, many of these licenses were issued by Joselit Ramrez (President of SUNACRIP) and Rajiv Mosqueda (SUNACRIP’s director of digital mining operations). Both individuals have been arrested on suspicion of involvement in a conspiracy to plunder from Venezuela’s energy sector.
It is undetermined when crypto entities in Venezuela will be able to recommence operations and how long the investigation will last.
