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Venezuela Shuts Down Crypto Mining Facilities and Exchanges Amid Corruption Probe

Venezuela Shuts Down Crypto Mining Facilities and Exchanges Amid Corruption Probe – As a part of a reorganization of the national cryptocurrency department and in the midst of investigations into corruption within the country’s oil company, Venezuela’s energy provider has closed down cryptocurrency mining facilities throughout the country.

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Recent reports from local media and tweets by the National Cryptocurrency Association of Venezuela indicate that mining facilities in the states of Lara, Carabobo, and Bolívar have been closed down in recent days. It remains uncertain as to how many cryptocurrency companies have been impacted. Additionally, cryptocurrency exchanges have also been instructed to halt their operations.

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The closure of the cryptocurrency mining facility is reportedly linked to a continuing investigation into corruption that involves Venezuela’s national cryptocurrency department and the oil company PDVSA. According to Tarek William Saab, Venezuela’s attorney general, government officials were purportedly engaged in parallel oil operations with the aid of the national cryptocurrency department, as he disclosed on March 25.

Saab pointed On twitter: “This network used a conglomerate of commercial companies to legitimize the capital obtained from sales through the acquisition of crypto assets, furniture and real estate.” As per Saab’s statement, at least ten individuals have been detained in relation to the investigation, which includes Joselit Ramírez Camacho. Camacho has been in charge of Venezuela’s cryptocurrency department since its establishment in 2018, supervising the country’s cryptocurrency Petro and the implementation of crypto tax regulations. 

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According to earlier reports, Camacho was apprehended on March 17 as part of the ongoing investigation. As of June 2020, Camacho was added to the United States’ list of most-wanted individuals. Homeland Security Investigations offered a reward of up to $5 million for any information that could lead to the arrest of the Petro supervisor. 

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On March 17, President Nicolás Maduro issued a decree announcing the restructuring of the National Superintendence of Cryptoactives. The Maduro administration stated that this move was made to shield the citizens of the country from the adverse consequences of economic sanctions, among other motives.

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