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Brazil Seizes About 1,400 Bitcoin Mining Rigs in São Paulo Raid

The raid revealed industrial-scale electricity theft that imposed meaningful costs on the regional utility.

Overview

  • Law enforcement and CPFL Piratininga removed roughly 1,400 mining rigs from facilities in Jundiaí and Louveira after a May 20 operation that stopped an estimated 2 gigawatt-hours of stolen power.
  • Investigators found nine rigged three-phase transformers with a combined capacity of 8,470 kVA that channeled grid electricity into the mining farms.
  • Authorities emphasized the crime was power theft rather than mining itself, since Bitcoin mining is legal in Brazil and prosecutors are pursuing the electricity-theft case.
  • A March 2026 law lets authorities seize and sell digital assets tied to crime, creating a path for any linked crypto to be liquidated and possibly affect markets.
  • The probe is ongoing, no suspects have been named, and the utility says the lost electricity represents a direct cost to customers that investigators will trace as they try to link wallets or cash-outs.