Mexican Authorities Raid Illegal Crypto Mining Operation Linked to Cartel Activity

Mexican officials raided a clandestine crypto mining site in the Sierra Norte mountains of Puebla between September 6 and 8. The operation resulted in the seizure of approximately 300 GPUs, along with satellite antennas and electrical transformers.

The facility was located near the Nuevo Necaxa hydroelectric dam. While crypto mining is legal in Mexico, the site was targeted for the unauthorized siphoning of power from federal infrastructure, a practice referred to locally as huachicoleo.

Puebla security minister Francisco Sánchez stated that the remote location and noise generated by the equipment helped investigators identify the site. This raid is the fourth of its kind in Puebla since early 2025.

Investigators are currently examining potential connections between the mining operation and organized crime groups, specifically the Sinaloa Cartel and the Jalisco New Generation Cartel. No direct links have been confirmed, and officials have not specified which digital assets were being mined.

The state utility, CFE, reported that electricity theft across all sectors resulted in losses of over 6,346 GWh, valued at approximately 13.8 billion pesos or $817 million, between January and July 2024.

The discovery aligns with a broader trend of criminal organizations utilizing digital assets. Reports indicate that crypto-related money laundering by Mexican criminal groups rose by 55.8% in 2025. Mining allows these groups to generate tokens without a transaction history, potentially bypassing the need to launder funds through traditional shell companies.