Venezuela Bans Crypto Mining… Again? Tether’s $300M Drama Unfolds!

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Welcome to Latam Insights, a compilation of the most relevant crypto news from Latin America over the past week. In this edition, Venezuela upholds a crypto mining ban as power demand spikes, Tether sues Titan Holding in Brazil for $300 million, and stablecoins dominate Peru’s crypto market.

  • Key Takeaways:

  • After May 7, demand hit 15,579 MW, Venezuela upheld a mining ban, and will next sanction illegal operators.
  • Tether sued Titan Holding over a $300M defaulted loan and next seeks an asset freeze to recover funds.
  • Binance notes stablecoins drive 90% of Peru’s $28B crypto market, aiming to cut remittance middlemen.

  • Venezuela Upholds Crypto Mining Ban as Power Demand Hits 9-Year Peak

    The government of Venezuela issued a statement reiterating the ongoing ban on digital mining operations, as the country faces peak energy demand, prompting power rationing measures affecting citizens. One might say this is the crypto equivalent of a toddler throwing a tantrum-except the toddler is a nation, and the tantrum involves national grid failures.

    The statement stressed that on May 7, the National Electric System experienced a peak demand of 15,579 MW, the highest number in 9 years, attributing this rise to an ongoing heat wave and the continued growth of the country’s economy. The economy, of course, is a concept as real as the mythical creature known as “a functioning government.”

    Regarding crypto mining, it states that “the absolute ban on digital mining in the national territory is upheld. Those who illegally use this activity will be sanctioned as the law establishes.” Furthermore, authorities established an oversight plan to fulfill this order. One can only imagine the oversight plan involves a team of bureaucrats armed with legal documents and a deep-seated hatred for innovation.

    Tether Sues Titan Holding in Brazil to Recover $300 Million Defaulted Loan

    Tether has introduced a lawsuit in São Paulo to recover $300 million borrowed to Titan Holding, a company part of the Master conglomerate owned by Daniel Vorcaro. Tether, the crypto equivalent of a persistent mosquito, is now suing Titan Holding for $300 million, because nothing says “I’m a responsible financial entity” like chasing down a loan in a country where the economy is a game of musical chairs with a revolving door.

    Vorcaro, who was apprehended on Thursday, was also the owner of Banco Master, liquidated by the Central Bank of Brazil in November after a $2.2 billion hole in its reserves was detected. One might wonder how a bank can have a “hole in its reserves” without anyone noticing-perhaps it was a very large hole, or the reserves were never there to begin with.

    According to local media, the loan was issued by Tether Investments one year ago, before the Master conglomerate scandal exploded, affecting over 1 million customers. The loan was supposed to be repaid by March 28, 12 months after its issuance. Tether, ever the patient investor, is now waiting for repayment like a child waiting for Santa Claus-except Santa has a better track record.

    Nonetheless, until the time of writing, Tether has not received any repayment from Titan Holdings. In the lawsuit, Tether requests “the freezing of financial assets deposited in bank accounts, financial applications, investments, and any other financial assets held by the Defendants Titan, Master Holding, and Master Participações be ordered.” This is essentially Tether saying, “We want our money, and if we can’t have it, we’ll take your toys.”

    90% of Peru’s $28 Billion Crypto Market Is Now Driven by Stablecoins

    Daniel Acosta, Latam North General Manager at Binance, recently commented about the relevance of these digital assets in the country, stressing that they were involved in the majority of the crypto transactions originating in Peru. Binance, the modern-day alchemists of finance, are now claiming that stablecoins are the new gold-except gold doesn’t require a 24/7 internet connection and a healthy dose of paranoia.

    According to Criptonoticias, Acosta stated that the Peruvian cryptocurrency market has an annual volume of $28 billion, with 90% of these operations involving dollar-pegged stablecoins. This is the crypto equivalent of everyone agreeing that water is wet, except with more mathematical formulas and fewer life preservers.

    For Acosta, one of the driving forces behind this high level of adoption is the use of these as a dollar proxy for remittances and cross-border payments, as these benefit from the removal of middlemen, reducing costs and increasing the efficiency of these processes. Or, as the rest of the world would call it, “a very expensive way to send money to your family while pretending you’re revolutionizing finance.”

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    2026-05-11 08:29