Mexican authorities have seized approximately 300 GPUs from a suspected illicit cryptocurrency mining operation in Puebla's mountainous municipality of Tlaola. According to reports from Reuters, investigators discovered the facility hidden in the Sierra Norte mountains, near infrastructure connected to a hydroelectric system, with the equipment including around 80 medium-voltage terminals, eight satellite antennas, and a pedestal transformer. The facility's electricity demand, operating noise, and isolated location drew attention from authorities, who had been following reports of suspected mining activity near the Nuevo Necaxa hydroelectric system. The raid occurred between September 6 and 8, with the facility tucked near the federal hydroelectric dam.
The criminal inquiry focuses on the unauthorized siphoning of electricity from federal infrastructure, a practice locally known as 'huachicoleo' - originally coined for fuel theft that has now expanded to cover energy piracy more broadly. Mexican authorities suspect organized crime involvement, with investigators looking into potential connections to major cartels including the Sinaloa Cartel and the Jalisco New Generation Cartel (CJNG). No direct links to any specific cartel have been validated so far, and investigators haven't disclosed which tokens the facility was mining. The facility's remote location and the noise it generated were key factors in tipping off investigators, as noted by Puebla's security minister, Francisco Sánchez.
According to Chainalysis, illicit cryptocurrency addresses received at least $154 billion during 2025, compared with roughly $59 billion in 2024. The company described this as a preliminary estimate that could rise when researchers identify more criminal addresses, with transactions involving sanctioned entities driving much of the increase. Chainalysis recorded a 694% rise in value received by sanctioned services and jurisdictions, while stablecoins represented 84% of the illicit transaction volume measured by the company. However, known illicit activity still represented less than 1% of total cryptocurrency transaction volume.
The Tlaola facility represents the fourth comparable mining operation found in the region since early 2025, as reported by Reuters. Three other comparable crypto mining facilities were discovered during 2025 near the hydroelectric dam in northern Puebla. Local authorities are working with neighboring states to determine whether other mining properties remain active, with investigators expected to examine the seized computers, internet equipment, electricity connections and property records. No public deadline has been set for an investigative report, and the building and approximately 300 mining units remain under official custody. This wasn't a one-off discovery, with the raid marking Puebla's fourth bust of an illegal crypto mining operation since early 2025, pointing to something more systemic than a few rogue miners.
Cryptocurrency mining is not prohibited in Mexico, but the primary charge concerns the unauthorized siphoning of power from federal infrastructure. Mexico's state utility, CFE, reported electricity theft losses exceeding 6,346 GWh valued at around 13.8 billion pesos (approximately $817 million) from January through July 2024 alone. This figure covers all forms of electricity theft across the country, not just crypto mining. The mining operation sits within a broader pattern of cartels embracing digital assets, with crypto-related money laundering by Mexican criminal organizations reportedly increasing by 55.8% in 2025. Unlike drug proceeds that need to be laundered through shell companies or cash-intensive businesses, freshly mined tokens arrive looking relatively clean, providing cartels with coins with no obvious paper trail back to illicit activity.
