Illegal Bitcoin Mining Farm Uncovered in Small Town in Mexico Exposes Energy Theft

Authorities in Mexico have exposed an illegal Bitcoin mining farm operating within the facilities of the Mexican Electricians Union (SME) in Nuevo Necaxa, which has a population of 8,200 people. The operation, which had been running for over a year, was discovered in the union’s multi-purpose hall, located directly across from the main square of Juan Galindo.

It relied on stolen electricity, a practice known locally as "huachicoleo eléctrico," siphoning power through clandestine connections to the Federal Electricity Commission (CFE) grid. A joint operation involving the Navy, Army, and National Guard dismantled some of these illegal connections, revealing hundreds of servers stacked from floor to ceiling in a double-height room, their constant hum audible blocks away, according to local residents.

The scale of the operation was significant. The multi-purpose hall, previously a public parking lot, had been transformed into a hub for Bitcoin mining, equipped with three-phase transformers capable of powering up to 100 homes. A newly published video by the newspaper e-consulta showed the interior, where the roar of the machines, likened to the sound of multiple blenders, confirmed the suspicions of neighbors who had reported the noise since late 2023.

The setup was connected to high-voltage lines of 23,000 volts, with estimates suggesting that mining a single could consume around 450,000 kilowatt-hours, equivalent to charging 7,500 electric vehicles. Such infrastructure, experts note, would have required specialized electrical knowledge to install, raising questions about who within the SME might have facilitated the operation. The network of energy theft extended beyond the hall, with additional illegal connections found at the former Luz y Fuerza del Centro (LyFC) camp at kilometer 153 and a house in the Salto Chico neighborhood, both properties previously handed over to the SME by the federal government.

Community Frustrations and Allegations of Complicity

The discovery has fueled outrage among Nuevo Necaxa residents, many of whom have grown increasingly frustrated by the impunity surrounding the operation. Locals noted that the hall became inaccessible to the public, with only outsiders and trusted associates of Miguel Márquez Ríos, a local deputy and former SME official, seen entering the premises.

Márquez, now a legislator for the Sigamos Haciendo Historia coalition, has denied any involvement, claiming the space was rented to a third party and that he was unaware of the activities taking place. However, he has failed to produce a rental contract or identify the alleged tenant, casting doubt on his statements.

Meanwhile, Mario Benítez, a former SME member, has publicly accused Márquez, along with other union leaders like Martín Esparza Flores and José Humberto Montes de Oca, of approving the mining farm’s installation. Benítez alleges that the operation involved multiple crimes, including energy theft, misuse of union property, tax evasion through cryptocurrency transactions, and the use of national assets for private gain.