Chinese Authorities Confiscate Thousands of Illegal Mining Units from Nearly Two Dozen Suspects
The Police in China on July 12 announced that it has confiscated 4000 cryptocurrency mining units that were deployed at nine factories across the country, without proper documentation from relevant authorities, which later resulted in the arrest of more than 21 suspects that have a direct or indirect link with the illegal mining activities.
The illegal activities of the miners in the Asian country have resulted in energy loss worth around $3 million. Local news outlet XinhuaNet who broke the news reported that the police in the Jiangsu province following a tip confiscated hardware units that are used in illegally mining cryptocurrency such as Bitcoin across nine factories.
Authorities swung into action, following a complaint by a local power firm, who reported about an abnormal spike in electricity consumption. After two months, their investigation paid off, after the local police authorities discovered the organized crime syndicate involved in the act.
Each mining unit was deploying around 25-50 kilowatts of electricity at industrial prices per day, with the criminals allegedly stealing power worth around 20 million Yuan, which is worth $2.1 million.
Crypto Mining Giant
China is one of the world’s leading cryptocurrency mining giant, this is despite its 2017 ban on the trading of bitcoin. The country is responsible for the mining of close to 70% of bitcoin that is used globally, with the availability of very cheap electricity a deciding factor in such regard.
The Asian giant is house to a lot of cryptocurrency mining firms, including Bitmain, which is the world’s largest cryptocurrency mining hardware producer that manufacture crypto-specific mining computer chips known as ASICS.
Cryptocurrency mining is one of the most contentious issues in the cryptocurrency community, with some countries placing a total ban on mining, while some regulate their activities.
Chinese illegal miners are some of the most dangerous on the continent, with the police authorities in the country collecting hard evidence of people laying cables via fish ponds to steal oil well power to fuel their bitcoin mining earlier in June.
Evidence also has it that some Chinese miners are also moving their operations into the Islamic Republic of Iran, which is basically due to the cheap power that’s available in the country.
The cost of mining varies from one country to another, while some countries have cheap mining rates, mining in other countries are quite expensive.
The reduction in the cost of mining led to the encouragement of bitcoin miners who were earlier frustrated out of business, due to its high cost. Analysts are thus of the opinion that the more the authorities clamped down on illegal miners around the world, the more mining becomes profitable and the influx of new investors into the sector.
With the increased mining activities in China, crypto enthusiasts in the country are optimistic that the government will soon relax its harsh crypto laws in the country.