Paraguay’s National Energy Authority (ANDE) has discovered illegal Bitcoin mining rigs in a local evangelical church. The estimated damage from the theft of electricity is $13,000.

The regulator claims that church officials secretly connected mining rigs that bypassed the official electricity meter, illegally siphoning electricity to mine cryptocurrency. ANDE did not say how long the church had been running ASIC miners, but said the illegal activity was putting additional strain on the national power grid, potentially causing power outages.

Those involved in illegal cryptocurrency mining will be required to pay $13,000 in damages. In addition, violators may face criminal charges. Under Paraguayan law, stealing electricity can result in a prison sentence of up to ten years.

The regulator believes that these measures should ensure the viability of the country’s energy resources and prevent illegal cryptocurrency mining, as mining is becoming popular in Paraguay. ANDE noted that the recent incident of illegal Bitcoin mining in a church highlights the urgent need to work on cryptocurrency regulation. As demand for digital assets grows, so does the volume of illegal mining activities.

According to the Social Security Institute (IPS), local mining companies create few jobs and have a negative impact on Paraguay’s hydroelectric resources, taking advantage of lower electricity rates. Since August 1, the Paraguayan government has increased electricity fees for miners by 14%.