Nazia Saeed
- Angola enacted a mining ban in April 2024 due to energy distribution concerns, criminalizing mining and imposing severe penalties for violations
- Interpol coordinated with Angolan authorities to dismantle 25 illegal mining centers, arrest 1,209 people, and seize over $37 million in equipment
- Authorities uncovered a crypto fraud scheme in Zambia, affecting 65,000 victims, with losses totaling $300 million
Angola in April 2024, implemented a mining ban, followed by Chinese authorities warning residents not to engage in virtual currency mining activities. Interpol has now announced that it has coordinated with local authorities in Angola to dismantle illegal crypto mining operations run by foreign nationals.
Interpol’s crackdown results in arrests and seizures
Interpol reported that more than 1,000 arrests were made as part of a widespread crackdown on illegal crypto mining activities and fraudsters across Africa. In Angola, authorities dismantled 25 crypto mining centers operated by 60 Chinese nationals.
The operation led to the seizure of over $37 million worth of equipment, which the Angolan government plans to redistribute to vulnerable areas. The overall crackdown, which spanned multiple African countries, resulted in the recovery of over $97 million and the arrest of 1,209 individuals.
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In addition to the mining crackdown, Zambian authorities uncovered a massive fraud scheme involving 65,000 victims who lost around $300 million. The victims had been promised high-yield returns on crypto investments but were deceived into participating in fraudulent schemes.
Angola’s mining ban amid energy concerns
Angola, with a population of approximately 39 million, has long struggled with power distribution and supply issues, which contributed to the country’s decision to ban crypto mining in April 2024. Although digital assets are not illegal in Angola, the ban was imposed due to the significant energy consumption required by crypto mining operations.
The mining ban now criminalizes cryptocurrency mining, with penalties including one to five years of imprisonment and the confiscation of equipment used for virtual currency mining. Chinese residents were specifically warned by their embassy about the mining ban and its legal consequences.
Global mining crackdowns amid energy concerns
This crackdown is part of a wider trend where countries are responding to concerns over crypto mining’s impact on energy resources. Other countries, including Russia’s Republic of Buryatia, have also conducted similar operations. In Buryatia, 95 mining rigs were found illegally siphoning electricity using hidden equipment.
In the US, mining regulations vary by state, with states like Texas providing favorable conditions for mining companies like MARA Holdings and Riot Platforms. On the other hand, New York introduced a two-year moratorium on proof-of-work mining in 2022 due to environmental concerns.
