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Brazilian Gang Raid Exposes Crypto Mining Operation Powered by Stolen Electricity

Rio de Janeiro police raiding a Comando Vermelho operational nucleus uncovered roughly 30 mining computers drawing…

Rio de Janeiro police raiding a Comando Vermelho operational nucleus uncovered roughly 30 mining computers drawing power from a clandestine tap on a utility pole — eliminating the primary operating cost of crypto production entirely. At 1.5 kW per machine, the setup avoided an estimated $6,400 in monthly electricity costs. Investigators are now examining whether the faction used the infrastructure for money movement or laundering.

The model is structurally simple: territorial control provides space and utility access, stolen electricity removes the variable cost that makes mining uneconomical, and the output converts directly into portable digital value. Brazil's energy regulator ANEEL reported roughly $2 billion in power-theft losses in 2024, with Rio among the worst-affected states.

Comando Vermelho has been diversifying its revenue base aggressively.

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