Venezuela's Anti-Corruption Investigation Rocks Cryptocurrency Industry: Exchanges and Mining Farms
Venezuelan crypto companies have reportedly been ordered to shut down over the past few days, following the President’s order to restructure the country’s crypto regulatory agency.
Exchanges and mining companies seem to have been a casualty of an investigation that resulted in the arrest of 21 individuals.
According to the tweets from Venezuela’s National Association of Cryptocurrencies, mining facilities were shut down in Bolívar, which “goes against the interests of private industry.”
Bolívar is not the only state impacted, as Lara and Carabobo reportedly saw the same action against the facilities located there.
The shutdowns, other reports say, are seen throughout the country.
Private company Doctorminer’s CEO Theodoro Toukoumidis and CBO Juan Jose Pinto issued a statement on March 23, saying that there has been a situation affecting the proper delivery of their service to international hosting customers for “an uncertain period of time.”
It stated that,
“Following the change of administration at the government crypto regulator, SUNACRIP, due to investigations to possible mishandling of public funds, the national energy supplier (CORPOELEC) is ordering the shutdown of hashrate infrastructures nationwide while investigations are ongoing.”
They added that they couldn’t say how long the “longer than usual power cut” would last.
There is currently no verified information as to how many mining companies have been shut down. The reports claim that the licensed mining farms have been closed down as well, calling for their reopening and arguing that the measure is costing people their jobs and the country the taxes paid by these employees.
Exchanges or not exchanges, now is the question.
Per several reports, at least some exchanges in Venezuela have been ordered to cease operations.
Startup Cryptobuyer tweeted that it had to do so as well, during a “restructuring process” that the crypto regulator is going through, as well as “complying with the orders issued” by the National Superintendence of Cryptoassets and Related Activities (SUNACRIP).
However, just a day later, they tweeted that,
“At no point did SUNACRIP order cessation of operations as has been misrepresented by some media outlets. On the contrary, [it] has given full support for the exchanges to continue their operations.”
With commenters finding these two statements contradictory and confusing, the company directed them to an explanation by the CEO in the Instagram story section (without providing a link).
Venezuelan lawyer Ana Ojeda Caracas also said that crypto exchanges and mining firms were ordered to cease operations, adding that these measures are “supposedly temporary.”
SUNACRIP itself has so far not issued a statement to clear up confusion.
According to Decrypt, the National Association of Cryptocurrencies’ President Jose Angel Alvarez, said that the private companies can’t bear responsibility for what is happening inside the regulatory body and that they are preparing a list of propositions to be delivered soon to SUNACRIP and its new head Anabel Pereira.
21 arrested.
All of the above seems to be a part of the investigation of corruption that includes Venezuela’s oil company PDVSA.
Tarek William Saab, Venezuela’s Attorney General, alleged that certain government officials were running oil operations with the help of the…
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