ChainCatcher reported that according to Bitcoin.com, the Paraguayan Bitcoin mining industry responded to the National Electricity Agency (ANDE)'s involvement in the closure of several illegal Bitcoin mines. Bruno Vaccotti, public affairs director of Bitcoin mining company Penguin, revealed the existence of three "vulture contracts" that slowed down the development of Paraguayan Bitcoin mining operations.
Vaccotti acknowledged in a radio interview that illegal mining operations hurt ANDE’s revenue, but he criticized the agency’s claims about Bitcoin mining activities. He said Penguin paid $850,000 a month in electricity bills, which is almost 50% of the $2 million in losses ANDE claims were caused by illegal crypto mining.
“Vulture contracts” are agreements ANDE signed with other undisclosed third parties for Bitcoin mining, which affect the power supply of new mines and cause losses to the state. Vaccotti said these contracts involving large amounts of energy are often signed by foreign investors seeking speculation.
Energy allocated to these parties is blocked from being used for these operations, thus undermining the possibility for genuine Bitcoin mining investors to utilize the energy involved. Vaccotti stressed that this could have a greater impact than the illegal activities that ANDE is pursuing.
