Argentina Tax Body Raids Bitcoin Mining ‘Hardware Smuggling Ring’

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Tim Alper

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Tim Alper

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Tim Alper is a British journalist and features writer who has worked at Cryptonews.com since 2018. He has written for media outlets such as the BBC, the Guardian, and Chosun Ilbo. He has also worked...

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September 22, 2024 23:00 EDT

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Argentina tax officials and naval security officers say they have thwarted a major Bitcoin mining hardware “smuggling” ring.

Per the media outlets La Capital Mar Del Plata and 0223, the Argentine Naval Prefecture (PNA) made multiple raids as part of a joint “mega-operation” with the national tax authority, the Administración Federal de Ingresos Públicos (AFIP).

‘Bitcoin Mining Hardware’ Smugglers Thwarted?

The officials said that the ring smuggled “hundreds” of “high-end cell phones, video cards, and components for cryptocurrency mining” into the country.

They also claimed that the group allegedly used “crypto investments” to launder its profits and hide them from the authorities.

The state agencies published images of the money and items they seized. Among these photos was an image of customs officers standing in front of cardboard boxes bearing the Canaan logo.

Canaan is known in the crypto world as a major producer of ASIC Bitcoin (BTC) mining hardware.

Under Argentinian law, only permit-holding companies may import dedicated crypto mining rigs.

Officers also published photos of armed officers standing in front of what appears to be a clothing store.

This may suggest that the ring may have used a small store as a front – and a makeshift warehouse – for illicit crypto mining equipment storage.

Agents Seize Money and High-end Phones

Officers also said they seized “more than 30 million pesos” (worth over $31,000) and $19,000 in US dollars.

They added that they conducted multiple raids including in Mar del Plata, a major city on Argentina’s Atlantic coast.

Officers also raided properties in Bahía Blanca, another city, in the southwest of the Buenos Aires Province.

Officers said they had arrested four people, two men and two women, after conducting raids on six residential properties in the cities.

All four have been formally charged with smuggling and money laundering-related offenses, the agencies confirmed.

Company Acted as a Front for Smugglers?

PNA and AFIP officials said they also seized a motor vehicle, multiple electronic items, as well as other financial assets and items of clothing.

They added that they also seized documents they think are related to the case, “linked to a corporation” they think was at the heart of the operation.

In total, the PNA and AFIP said, the assets they seized had a market value of “over $624,000.”

In 2022, the AFIP swooped on illegal Bitcoin mining farms in a range of unusual locations, including a livestock farm and a luxury apartment block.

More recently, the tax agency has announced its intention to crack down on illegal Worldcoin (WLD) resellers.

The tax body is currently in the middle of trying to ensure that all crypto exchanges in the country abide by anti-money laundering protocols.

Under new regulations, all platforms active in the nation must ensure their clients abide by anti-money laundering protocols.