Cryptocurrencies have long been under the microscope owing to the suspicion with which they continue to be regarded the world over. Some or the other incident brings the credibility of cryptocurrencies under question. The latest news of cryptocurrency related deception has come from Brazil where local media outlets have reported an accidental discovery of cryptocurrency money laundering by the local police which has also resulted in the arrest of a suspect.
How the Crime Unravelled
The money laundering, quite interestingly, was discovered through sheer serendipity by the State Department of Drug Trafficking in Porto Alegre. The department was in search of an alleged drug dealer and reached a house instead where the illegal mining of Bitcoin was underway, as per the news story.
The house was found netted with 25 Bitcoin mining rigs backed by state of the art software and hardware working 24/7. The entire cost of the setup was around $63,000. Also, present on the site was a man claiming to be the tenant of the house who was later arrested and charged with stealing electricity to power the entire mining setup.
On the surface the man’s mining endeavors didn’t appear to be illegal, however, while searching the police found a gun and a bike both of which were reeking of illegal activities since neither had a legal number to mark them as lawfully acquired. Suspecting the man to be a stand-in or a cohort of sorts of a more significant money laundering and trafficking racket, the police went for his arrest.
The man is currently being held under suspicions; however, if the police succeed in establishing the man’s connection with a money laundering circuit, the future of crypto in Brazil could come under question. Up until now, the Brazilian government’s stance on crypto has been reasonably favorable, and any proof of crypto money laundering in the country could mean at least a revision in crypto regulations in the country.