Mexico Seizes 300 Crypto Mining Rigs at Hydroelectric Dam
Key Points
- Mexican federal prosecutors, the Navy and Puebla state police seized 300 mining machines on September 6, 2026 from a property in Tlaola.
- The operation drew electricity illegally from a complex fed by the Nuevo Necaxa hydroelectric dam in the Sierra Norte region.
- Forensic accountants are tracing who funded the hardware, and money laundering has not been ruled out by investigators.
Investigators have not ruled out money laundering. Forensic accountants are tracing who funded the mining hardware acquisition, and the state government is examining whether assets produced at the site were used to launder proceeds of crime. Mexico's Federal Electricity Commission is participating in the investigation.
The utility commission reported that non-technical losses from theft, meter tampering and illegal connections totaled 6,346 gigawatt hours between January and July 2024, valued at 13.8 billion pesos ($817 million). Three other mining operations were dismantled across Puebla and neighboring Tlaxcala in 2025, and a farm discovered near the same dam in the previous year was allegedly operated from properties belonging to the electrical workers' union.
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Electricity theft by cryptocurrency miners is not unique to Mexico. Malaysian authorities seized more than 75,000 rigs in 2025 over power theft valued at $1.1 billion by the country's utility, and Brazilian police shut an illegal operation in Rio de Janeiro during the same period. The pattern demonstrates that authorities globally are increasingly targeting illegal mining operations that exploit hydroelectric and other power infrastructure.
The investigation's focus on money laundering suggests Mexican authorities view the operation as potentially connected to broader criminal activity beyond electricity theft, making the case significant beyond the power sector alone.
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Market Outlook
Mexican authorities will likely expand dismantling operations across Puebla and Tlaxcala targeting additional illegal mining networks. The forensic accounting investigation may reveal organized criminal involvement, potentially leading to asset seizures beyond equipment. International coordination with other nations conducting similar enforcement actions could pressure mining operations to relocate further or seek legitimacy through power purchase agreements.
Sources: Decrypt and other international news outlets.
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