Brazil Police Dismantle Illegal BTC Mining Farms, Including in Amazon

• Brazil Police executed multiple operations against illegal BTC mining activities across the country.
• To tackle large-scale electricity theft from the public grid and crypto setups linked to organized crime.
• These operations signal intensified scrutiny and potential stricter rules on energy use in crypto mining.

In May 2026, Brazilian authorities intensified enforcement against illegal Bitcoin (BTC) mining operations, primarily targeting large-scale electricity theft from the public grid and setups linked to organized crime. Although Bitcoin mining is fully legal in Brazil when operators pay for electricity and comply with regulations, unauthorized tapping of power or criminal ties trigger aggressive raids.

According to sources, Brazilian authorities have carried out multiple operations against illegal mining activities. On May 20, 2026, the São Paulo State Property Crime Investigation Department (DEIC) with utility company CPFL Piratininga dismantled illegal (BTC) mining in Jundiaí and Louveira, seizing 1,400 rigs using nine rigged transformers (8,470 kVA) to steal 2 GWh of electricity, enough to power about 2,000 households monthly.

In a separate operation in Rio de Janeiro, police raided a BTC mining and trading center run by the Comando Vermelho criminal organization inside the Lins complex in the northern part of the city. The facility was operating on stolen electricity and was also suspected of facilitating money laundering tied to drug trafficking.

Furthermore, between May 12 and 15, 2026, Brazil’s Federal Police, Ibama, ICMBio, the National Force, and military police, targeted seven illegal gold mines in the Amazon region, spanning from the border between Amapá and Pará in Laranjal do Jari and Almeirim. This resulted in the seizure of four hydraulic excavators, dozens of engines, three ATVs, two tractors, generators, clandestine camps, and about 3,300 liters of diesel.

The nationwide raids were triggered primarily by large-scale electricity theft from the public grid, driven by illegal BTC mining operations. Investigations revealed extensive use of rigged infrastructure designed to bypass metering systems and sustain high-energy consumption without detection.

A second key factor was the emergence of hybrid criminal operations in remote and poorly monitored regions of Brazil. In areas such as the Amazon, illegal crypto mining was found operating alongside illicit gold mining, forming interconnected networks that exploit both natural resources and public utilities.

Related: Brazil Targets R$1.6 Billion Crypto-Laundering Network in Narco-Fluxo Raid

These operations, enabled by the March 2026 law allowing the freezing, seizure, and liquidation of digital assets tied to criminal activities, are intensifying regulatory pressure across Brazil’s crypto mining sector. Proceeds from liquidations will directly fund public security budgets.

Meanwhile, legitimate miners could face higher compliance costs, stricter grid access requirements, and increased scrutiny on energy consumption, particularly in sensitive areas like the Amazon. While this effectively deters gray-market and illegal operations linked to energy theft and criminal groups, it risks slowing overall sector growth in the short term amid environmental and energy security concerns.

Moreover, enforcement is expected to focus on improved electricity monitoring and clearer separation between compliant, legitimate mining and criminal activity. This could ultimately strengthen the industry by reducing unfair competition from illegal farms and encouraging sustainable, regulated expansion.

Related: Brazil Turns Confiscated Crypto Into Law Enforcement Funding Tool