Break-In at Crypto Mining Facility Sparks International Fallout
Paraguayan authorities have deported three Chinese nationals and arrested a fourth individual after an attempted theft at a cryptocurrency mining facility near the country’s Itaipu hydroelectric dam. The break-in, which occurred at a site operated by Teratech SA in Coronel Bogado, has raised questions about illegal employment, international border breaches, and potential links to organized crime.
According to a May 15 statement from prosecutor Irene Rolón, the suspects were apprehended shortly after they broke into a secured section of the Teratech facility. The swift intervention by local police led to the arrest of all four individuals involved in the incident. Three of them—identified as Jinping Duan, Tian Jianyun, and Zheng Guanglong—were found to be undocumented immigrants from China, lacking any official entry records into Paraguay.
Authorities believe the trio may have entered the country illegally via neighboring Brazil or Bolivia. Following their capture, they were deported from Paraguay, with assistance from Interpol in confirming their immigration status and possible border crossings.
Questions Linger Over Employment and Company Ties
The exact nature of the three deported individuals’ connection to Teratech remains unclear. Prosecutors suspect the men may have worked at the facility as independent contractors or programmers. “We are still waiting on official confirmation from the company’s CEO,” Rolón noted, highlighting the ongoing investigation into whether Teratech employed them—knowingly or otherwise.
Rolón added that the men had likely been in Paraguay for several months, working without proper documentation. Whether this employment was formal or under the table is one of several questions Paraguayan officials hope to clarify through further inquiry and the CEO’s forthcoming statement.
Teratech SA has yet to publicly comment on the incident or confirm the employment status of the deported individuals.
Local Resident Charged and Hospitalized
The fourth individual arrested at the scene, Nahun María Velázquez Garcete, is a Paraguayan legal resident. Authorities allege that Velázquez is connected to a broader criminal organization and have charged him with aggravated theft. He is currently being held in pretrial detention.
Shortly after his arrest, Velázquez was hospitalized in critical condition. Authorities have not released information about the nature or cause of his injuries, and it remains unclear whether they occurred during the arrest or prior.
Paraguayan investigators suspect that additional individuals were involved in orchestrating the attempted theft. The case remains open as law enforcement works to identify and locate any other parties connected to the break-in.
Energy and Opportunity Draw Miners to Paraguay
The incident shines a spotlight on Paraguay’s growing role in the global cryptocurrency mining industry, thanks in part to its surplus of renewable energy. The Itaipu hydroelectric dam, one of the largest in the world, produces enough electricity to meet the country’s domestic demand—and then some. This abundance of unused energy has attracted a wave of mining operations seeking to tap into Paraguay’s low-cost power supply.
The Teratech SA facility, situated near the dam in Coronel Bogado, is one of many such operations that have set up shop in the area. In recent years, Paraguay has become a destination of interest for international miners looking to capitalize on these favorable conditions. In April, for example, Bitcoin mining company Hive Blockchain Technologies announced a partnership to expand operations in Paraguay, citing the country’s affordable and renewable energy as a key draw.
However, as the latest attempted theft underscores, the rapid expansion of crypto mining has not come without risks. From concerns about infrastructure strain to allegations of illegal labor and cross-border crime, Paraguay faces growing challenges in balancing economic opportunity with enforcement and oversight.
Investigation Continues
As authorities dig deeper into the break-in, they are focused on uncovering how the undocumented individuals entered the country, whether they were knowingly employed by Teratech, and what role, if any, organized crime played in the incident. Until then, the case serves as a stark reminder of the security risks tied to the booming and often opaque world of cryptocurrency mining.
