Paraguayan authorities have deported three Chinese nationals and detained a local resident following an audacious attempt to pilfer cryptocurrency mining equipment from a facility near the Itaipu hydroelectric dam. The incident, which unfolded on May 15, 2025, underscores the ongoing security challenges in the burgeoning crypto sector in Paraguay, a country increasingly attractive to digital currency miners due to its plentiful renewable energy resources.
Arrest and Deportation: A Closer Look
The saga began when law enforcement agencies interrupted an attempted theft at Teratech SA’s mining facility in Coronel Bogado. The assailants had gained access to a restricted area before being swiftly apprehended by police. Prosecutor Irene Rolón revealed the identities of the three deported individuals as Jinping Duan, Tian Jianyun, and Zheng Guanglong, who had no official entry records into Paraguay. Authorities suspect they slipped into the country through Brazil or Bolivia, raising concerns over cross-border mobility and illegal labor within the region.
Nahun María Velázquez Garcete, a Paraguayan legal resident, was also arrested and faces charges of aggravated theft. Velázquez Garcete is believed to be part of a larger criminal network targeting crypto assets. Interestingly, he was hospitalized in critical condition post-arrest, though details about his injuries remain undisclosed—adding a layer of complexity to the unfolding narrative.
The Crypto Mining Landscape in Paraguay
Paraguay has emerged as a hotspot for crypto mining, thanks largely to its bountiful supply of renewable energy from the Itaipu dam. This giant hydroelectric facility not only meets all of Paraguay’s domestic electricity needs but also generates a surplus, making it an attractive site for energy-intensive mining operations. The allure of affordable energy has drawn various players to the country, including Bitcoin miner Hive, which recently announced a partnership aimed at leveraging Paraguay’s low-cost energy. As explored in our recent coverage of Bitcoin Surges Past $94,000 as Institutional Interest and Market Optimism Grow, the global interest in Bitcoin is driving more miners to seek cost-effective locations like Paraguay.
The incident at Teratech SA highlights the darker side of this boom—security vulnerabilities and the shadowy underbelly of illegal operations. Prosecutors suspect that the deported individuals might have been illicitly employed as programmers, but this remains speculative until Teratech’s CEO provides further insights into their connection with the company.
Implications and Unanswered Questions
As crypto mining continues to proliferate in Paraguay, the need for robust security measures becomes increasingly apparent. This latest breach serves as a cautionary tale for operators in the region, suggesting that while energy costs might be favorable, safeguarding assets is an equally crucial consideration. For a deeper dive into the market dynamics influencing crypto investments, see Bitcoin Surpasses $95K Amid Resilient U.S. Stocks, Analysts Voice Concerns Over Market Perception.
The investigation is ongoing, with Paraguayan officials and Interpol working to uncover additional individuals involved in the attempted heist. The potential involvement of a larger criminal organization raises questions about the extent of illegal activities in the mining sector and whether existing regulations are sufficient to curb such incidents.
Looking forward, the incident may prompt a reevaluation of security protocols at mining facilities throughout the region. It also casts a spotlight on the international dimensions of crypto-related crime, emphasizing the need for cross-border cooperation among law enforcement agencies to tackle these challenges effectively.
As Paraguay’s crypto landscape evolves, one thing is clear: the intersection of abundant resources and emerging technology presents both opportunities and challenges. Whether the country can navigate these complexities will likely shape its future role in the global cryptocurrency ecosystem.
Source
This article is based on: Paraguay deports three undocumented immigrants after crypto mining theft attempt
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
