Mexican cartel crypto farm seized in mountain raid — 300 GPUs, satellite links, and industrial transformers tapped hydroelectric power

There is increasing evidence that Mexican drug cartels are diversifying into cryptocurrency mining and are using crypto platforms to diversify their income and, at the same time, launder their ill-gotten gains and fund other illegal activities. Reuters reports that local Mexican police uncovered a clandestine cryptocurrency farm in Tlaola, a town located in the leafy mountains of Puebla's Sierra Norte region. They found 300 GPUs, electricity infrastructure, and satellite equipment. The electricity-hungry operation likely drew power by secretly tapping into the grid at Presa de Necaxa, a nearby hydroelectric dam.

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While this latest hidden facility found by police may seem small, Reuters notes it is the fourth such crypto farm Mexican authorities have uncovered in this region since early last year. According to a Mexico-based security analyst, the crypto farms discovered show that the cartels are increasingly sophisticated in their operations. In the latest bust, the Mexican federal authorities, the Navy, and state police seized around 300 GPUs, 80 medium-voltage terminations, a transformer, and eight satellite antennas.

It might not be surprising to hear about the Mexican cartels being tied up in crypto. Blockchain analytics firm Chainalysis, as cited by Reuters, reckons illicit crypto transactions grew from $59 billion in 2024 to $154 billion last year. The firm links the surge recorded to sanctions evasion involving governments. However, in South America, cartels are increasingly interested in using this channel to launder money. The mining operations are also integrated into the scheme, as stealing electricity is easy for organized crime. Mainstream consumer GPU mining ended in H2 2022, flooding the market with used graphics cards.