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turning stolen energy into digital cash

Rio de Janeiro Civil Police launched an operation concentrating on a Comando Vermelho operational nucleus and located a crypto mining setup with roughly 30 computer systems organized on cabinets in a room on an apparently deserted lot.

The farm drew energy from a clandestine electrical connection operating straight from a utility pole. The machines carried high-capacity followers and exhaust methods, together with remote-monitoring {hardware}.

As G1 reported, police are investigating whether or not the faction used the construction for cash motion or laundering.

The bodily configuration already describes the likelihood {that a} felony group with territorial management can convert stolen electrical energy into moveable digital worth.

Territorial management supplies entry to house and utilities, a clandestine electrical energy connection eliminates the first working price, and the mining output converts straight into moveable worth.

Stolen power becomes portable value for crypto crimeStolen power becomes portable value for crypto crime
An infographic maps the four-step mannequin allegedly utilized in Rio’s Complexo do Lins: managed territory, stolen electrical energy, mining {hardware} and moveable digital worth output.

Stolen electrical energy is the load-bearing ingredient of that mannequin, since mining solely makes financial sense when electrical energy is reasonable, backed, or free.

Cambridge’s Bitcoin Electrical energy Consumption Index methodology identifies electrical energy as one in all mining’s highest working prices. Brazil’s electrical energy regulator, ANEEL, reported that power theft and different non-technical losses price the nation roughly $2 billion in 2024, with Rio de Janeiro among the many states recording the very best ranges of energy theft.

At 1.5 kilowatts per machine, 30 computer systems would draw about 45 kilowatts, consuming about 32,400 kilowatt-hours monthly. At $0.20 per kilowatt-hour, that’s $6,400 in prevented month-to-month electrical energy prices, an actual working benefit delivered with out cost.

The unknowns are the {hardware} sort, the coin mined, the hash fee, and whether or not the crypto was ever cashed out. Stolen electrical energy removes one in all mining’s highest variable prices no matter these unknowns.

Comando Vermelho’s infrastructure evolution

The UK House Workplace identifies Comando Vermelho as one in all Brazil’s two largest organized felony teams alongside PCC, with territorial attain throughout city favelas, border areas, and the Amazon.

The group originated in Rio’s jail system within the late Nineteen Seventies, increasing into worldwide cocaine trafficking and management of working-class neighborhoods the place armed teams usually handle fundamental companies, together with gasoline, web, and transportation.

AP reported in 2025 that Rio police accused Comando Vermelho of coercing over 300 bike drivers into utilizing a clandestine ride-hailing app in Vila Kennedy, producing as much as $200,000 monthly, with income allegedly funneled by means of shell corporations to finance drug trafficking.

On Could 4, native information Folha reported that CV had intensified its presence in unlawful gold mining close to Brazil’s border with Peru, treating gold as a worthwhile and secure various to cocaine and utilizing the exercise for funding and cash laundering.

Exercise Managed useful resource Income logic Why it issues
Drug trafficking Territory, armed management, routes Conventional illicit commodity movement Core historic enterprise
Clandestine ride-hailing app Native transport networks Charges from coerced drivers / shell-company flows Reveals management over city companies
Unlawful gold mining Land, extraction zones, cross-border entry Gold as funding and laundering automobile Reveals transfer into commodities
Crypto mining setup House, stolen electrical energy, {hardware} Converts unpaid energy into digital worth Reveals doable transfer into crypto manufacturing

Every exercise monetizes territory and managed sources as a standalone income line, with transaction flows that run exterior the cash-and-drugs channels investigators have traditionally focused.

The Rio findings additionally sharpen the present image of crypto crime in Brazil.

Folha reported on Could 9 that Brazil’s Federal Police seized $14 million in crypto in 2025, with seized belongings showing throughout drug trafficking, cash laundering, human rights violations, environmental crimes, and on-line fraud.

On Could 12, a nationwide operation spanning 16 states deployed 165 search-and-seizure warrants and 71 arrest warrants targeted on drug trafficking, felony factions, and cash laundering.

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