Paraguay Convicts Two Bitcoin Miners for Energy Theft, Suspends Jail Terms

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The National Power Administration of Paraguay (ANDE) secured a conviction on June 19 against two individuals for using stolen energy to mine bitcoin by bypassing metering systems and connecting directly to the power grid. A Paraguayan tribunal found Cristian Daniel Jara Villalba and Ramon Martinez Morinigo liable for energy theft and sentenced them to two years in jail, though the court suspended execution of the sentence. The ruling stems from ANDE's ongoing enforcement against illegal mining operations that have caused millions in losses, following a 2024 case where similar theft resulted in over $1.5 million in damages.

Paraguayan Tribunal Convicts Two Miners for Energy Theft

On June 19, ANDE announced it obtained a favorable decision in a legal process against the two miners. The tribunal convicted Cristian Daniel Jara Villalba and Ramon Martinez Morinigo to two years in jail for energy theft. The defendants allegedly bypassed the metering system and connected the power grid directly to their property to mine bitcoin. Despite the guilty verdict, the court suspended execution of the sentence.

Court Extends Liability to Property Owner

The ruling established a legal precedent by holding the property owner accountable. One of the defendants held the contract with the power company at the location where the miners were discovered. The defendant failed to demonstrate that he did not know about the use of his property for illegal mining activities, making him liable under the court's decision.

ANDE described the ruling as a milestone, stating: "This judicial decision sets a powerful precedent by establishing that justice will reach not only those who carry out illegal connections but also those who facilitate, permit, or benefit from actions that compromise the national electricity system."

ANDE Reaffirms Zero-Tolerance Policy on Illegal Mining

ANDE reaffirmed its "zero-tolerance policy regarding actions that undermine the national electricity system." The administration vowed to "continue to strengthen controls and legal measures to ensure that those who obtain electricity through illicit means are held accountable before the law."

This conviction is part of ANDE's ongoing fight against illegal mining and energy theft, which has caused millions in losses for the institution and the country. In 2023, Edgar Saavedra and Rodrigo Suares were convicted of the same crimes and sentenced to two years in jail, with their sentences suspended. In August 2024, Carlos Raul Rojas was sentenced to 18 months in prison for similar crimes after causing over $1.5 million in losses to ANDE.

FAQ

What did the Paraguayan court decide on June 19 regarding bitcoin miners?

On June 19, a Paraguayan tribunal convicted Cristian Daniel Jara Villalba and Ramon Martinez Morinigo to two years in jail for energy theft related to bitcoin mining. The court suspended execution of the sentence. ANDE announced the favorable decision, which established that property owners who facilitate illegal mining can be held liable.

Why did ANDE describe the June 19 ruling as a legal precedent?

ANDE described the ruling as a precedent because the court held a property owner liable for illegal mining activities on his property, even though he claimed he did not know about the operation. The decision establishes that justice will reach not only those who carry out illegal connections but also those who facilitate or permit actions that compromise the national electricity system.

How much in losses did illegal mining cause in a prior ANDE case?

In August 2024, Carlos Raul Rojas was sentenced to 18 months in prison for energy theft related to bitcoin mining after causing over $1.5 million in losses to ANDE. This case was part of ANDE's ongoing enforcement against illegal mining operations.

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