A foreign national is in police custody after the South African Revenue Service (SARS) and SAPS raided a warehouse in Vryburg in North West on Thursday.
The unauthorised warehouse was used to illegally connect cryptocurrency mining equipment to the town's electrical power supply and to manufacture alcohol.
SARS also confiscated 14 617 bottles of duty-free liquor and popular local brands valued at an estimated R3.8 million.
The warehouse was well equipped with state-of-the-art equipment with the bitcoin mining equipment valued at around R10 million.
The investigation continues and more arrests are expected.
SARS Commissioner Mr Edward Kieswetter praised the ongoing cooperation between SARS and SAPS in apprehending those bent on perpetrating criminality.