Mexico seizes 300 GPUs in suspected illegal cryptocurrency farm

Mexican authorities seized approximately 300 GPUs in Puebla, suspected illegal cryptocurrency mining site

Mexican authorities seized approximately 300 graphics processing units (GPUs) at a facility suspected of illegal cryptocurrency mining in Puebla. Investigators are examining whether the remote facility illegally stole electricity from a nearby hydroelectric dam and investigating whether there was money laundering.

During the operation, authorities found 80 medium-voltage terminals, 8 satellite antennas and a transformer at the hidden location. As of now, investigators have not publicly confirmed the specific criminal group, type of cryptocurrency, wallet address, arrest or criminal charges involved.

Case details and background

According to Reuters reported on September 12, investigators discovered the operation site in the town of Tlaola in the mountains of Puebla state, close to the infrastructure of the hydropower system. The field equipment includes approximately 80 medium-voltage terminals, 8 satellite antennas and a column transformer. Authorities said this was the fourth such mining facility discovered in the area since early 2025.

Agencies involved in the operation include the Office of the Attorney General of Mexico, the Mexican Navy, and the Public Security Secretariat of the State of Puebla. According to local media reports, authorities found about 300 dedicated computers operating in the building. The presence of medium-voltage connections and transformers suggests that the facility has an industrial-scale power supply, although investigators have not released specific power consumption data.

Satellite antennas provide communications infrastructure support for the region, where fixed Internet access may be limited. Officials have not identified the satellite service provider or said whether user records are being sought in the investigation. Residents in nearby communities told Reuters that the mechanical noise of the equipment could be heard a kilometer away. The building is located next to a sparsely trafficked road in the mountains of northern Puebla, about two kilometers from the nearest village.

Francisco Sanchez Gonzalez, head of security for the state of Puebla, said the facility's power needs, operating noise and isolated geographical location attracted the attention of authorities. He told reporters that officials had been following reports of suspected mining activity near the Nuevo Necaxa hydropower system.

Electricity theft allegations are still under investigation

It should be noted that cryptocurrency mining itself is not illegal in Mexico. The current criminal investigation focuses on the source of the electricity and whether assets generated at the premises were related to money laundering or other illegal activities.

Mexican authorities are investigating whether the farm obtained electricity without authorization from infrastructure near the hydroelectric dam. Neither the Federal Electricity Commission (CFE) nor prosecutors have publicly confirmed the alleged illegal connection. As the case is still ongoing, Mexico's Attorney General's Office declined to comment to Reuters for further comments. Officials have not released inspection reports, estimated power loss data, or evidence proving the way the facility's power supply is connected.

"If they are indeed stealing electricity, the main cost of operating is-well-zero," Samuel Leon, an energy theft expert at the University of IberoAmerican in Mexico, told Reuters in an interview. His statement was based on assumptions because investigators had not yet completed their findings. Electricity often represents one of the largest operating costs for mining farms. The powerful computing unit continues to run, while cooling equipment is used to remove heat generated by the machine.

Other governments have also found mining sites supported by bypassing electricity meters or unauthorized power connections. For example, Malaysian police seized 73 Bitcoin miners 'equipment in July 2026 during an operation to crack down on electricity theft; Thai authorities confiscated 996 Bitcoin miners after the national electricity authority claimed that operators had tampered with electricity meters. The Thai case involved confirmed meter interference, while the investigation in the Mexican state of Puebla has not yet reached comparable public conclusions.

According to Federal Electricity Commission data cited by El País, non-technical losses recorded 6,346 gigawatt hours of electricity between January and July 2024. Such losses cover power theft, meter manipulation and illegal connections in utility systems, with an estimated commercial value of 13.8 billion pesos. These data do not measure specific losses caused by Traola's operations. Authorities have not disclosed when the Puebla site started operating or how much electricity it consumed.

Suspected gang involvement inconclusive

Reuters described the farm as a suspected method of laundering illegal gains, citing analysts who study organized crime and cryptocurrencies. Mexican authorities say they are investigating whether the mined assets may have been used to legalize criminal funds.

However, investigators have not publicly linked the facility to any specific gang. No evidence currently released establishes who funded, managed or benefited from the operation. "Drug gangs seem to have reached a new level of complexity," David Saucedo, a security analyst based in Mexico, told Reuters. He pointed out that installing such equipment requires technical knowledge and financial support, which only well-funded criminal organizations can provide. Sacedo's assessment does not constitute an official conclusion. The same infrastructure may also be operated by other criminal groups or independent power thieves, and prosecutors have not disclosed ownership records of the property or equipment.

Caio Motta, a Latin America expert at Chainalysis, said organized criminal groups look for mining locations where electricity is cheap or where electricity can be stolen within their areas of influence. "[Such operations] may be placed in places where criminals can steal electricity and build large infrastructure to mine cryptocurrencies." Mota told Reuters. Chainalysis has not released wallet-level evidence linking the Traola facility to gangs.

Mining can generate newly issued cryptocurrencies through computing work. Converting criminal cash into mining hardware can create a separate revenue stream, but officials have yet to explain the mechanism for suspected money laundering in the Puebla case. The lack of a public wallet address makes it impossible to independently review any coins produced, transfers received or exchanges used. Authorities have not yet identified the mining pool, software, digital assets or target wallets connected to the seized machines.

The global total of illegal cryptocurrencies needs to be viewed in context

Chainalysis estimates that cryptocurrency addresses deemed illegal received at least US$154 billion in 2025, compared with approximately US$59 billion in 2024. The company described its data as a preliminary estimate, and the number could rise as researchers identify more criminal addresses.

Transactions involving sanctioned entities drove most of the growth. Chainalysis records show that the value received by sanctioned services and jurisdictions increased by 694%, while stablecoins accounted for 84% of the illegal transactions the company measures.

This $154 billion estimate covers several types of activities, including fraud, stolen funds, sanctions activities, ransomware and illegal services. It does not represent transactions conducted solely by gangs, nor does it represent the amount of cryptocurrency produced through illegal mining. According to Chainalysis, known illegal activity still accounts for less than 1% of total cryptocurrency transactions. The company's data covers transactions recorded on public blockchains, excluding activities that cannot be connected to identified illegal addresses.

Once investigators have identified the relevant address, they can trace transfers on the transparent blockchain, but attribution often requires exchange records, equipment evidence or service provider information. Privacy-sensitive assets and transactions occurring within centralized platforms may impose further restrictions. Mota said law enforcement agencies are better equipping themselves to investigate organized crime's use of cryptocurrencies. Mexican officials have not yet said whether blockchain analytics companies were involved in the Traola case.

Investigators are searching for more hidden farms

Reuters reported that three similar cryptocurrency mining facilities were discovered near the hydropower dam in northern Puebla in 2025. The latest seizure is the fourth operation point identified in the region since the beginning of this year.

Local authorities are working with neighboring states to determine whether other mining properties are active. Officials have not named the participating states and have not released a timetable for inspections. Investigators are expected to examine seized computers, Internet equipment, power connections and property records. If the machine retains available data, forensic review can determine which assets were mined and where any rewards were sent.

There is currently no deadline for publication of the investigation report. Mexico's Attorney General's Office has not announced criminal charges, and the building and about 300 mining equipment remain under official supervision.