Paraguay Convicts Two Bitcoin Miners for Energy Theft

A Paraguayan court on June 19 found Cristian Daniel Jara Villalba and Ramon Martinez Morinigo guilty of large-scale energy theft for directly connecting the national power grid to their property to run bitcoin mining equipment. The court sentenced both to two years in prison, but suspended the execution of the sentences.

Prosecutors presented evidence that the defendants bypassed official meters and drew electricity without payment to power high-energy computer rigs used for bitcoin mining. The tribunal also held the person who held the electricity contract for the property liable, finding he did not prove he was unaware of the illegal use.

The National Electricity Administration (ANDE) noted the decision establishes that owners, tenants or others who permit or benefit from unauthorized connections can face legal consequences when they cannot show they did not know about the scheme. ANDE characterized its stance as a zero-tolerance policy regarding actions that undermine the national electricity system and stated it will strengthen controls and legal measures to hold illicit users to account.

Paraguay has recorded several convictions tied to illegal electricity use for cryptocurrency mining. In 2023, Edgar Saavedra and Rodrigo Suares received two-year sentences that were suspended. In August 2024, Carlos Raul Rojas was sentenced to 18 months after ANDE estimated more than $1.5 million in losses from his illegal connections.

ANDE reported multi-million-dollar losses from illegal mining and energy theft in recent years and stated it plans to broaden inspections and legal actions to dismantle unauthorized mining grids. The June 19 ruling is part of ANDE’s ongoing enforcement campaign targeting both operators who install illicit mining equipment and those who enable such operations through fraudulent or bypassed metering.