Chinese Bticoin Miners Allegedly Stealing Electricity Through Fish Ponds To Power Mining Activity

Chinese Bitcoin Miners Allegedly Stealing Electricity Through Fish Ponds To Power Mining Activity

One of the problems with Bitcoin mining is its halving. Bitcoin’s next halving is expected to take place about a year from now in May 2020. A halving is something that happens after every 210,000 blocks are produced which usually takes about four years. When a halving occurs, block rewards gotten by miners is directly halved and the next event will see rewards drop from the current 12.5 BTC to 6.25 BTC. This is one of the downsides to Bitcoin mining as many people believe that with each halving, the number of miners will drop significantly since the reward will be greatly reduced.

Another major problem with mining is the amount of electricity the entire process regularly consumes. Knowing exactly what to do and having the equipment necessary without being able to access the amount of energy required will do nothing for miners and this is probably why miners are now taking to stealing power for their mining.

Using Fish Ponds As Cover

Evidence has now been found by police in China, that many people are now illegally laying cables and running them through fish ponds to conceal their efforts to steal power from oil wells, for Bitcoin mining. According to reports, the head of oil production at the Daqing Oil Field – China’s largest oil field situated in Heilongjiang province – alerted the Qiqihar District Public Security Bureau’s Green Grassland Police Station when they noticed evidence of the theft. The police then conducted an investigation, deploying drones and reportedly collected more than enough evidence to initiate a case. However, at the moment, the exact details of the case regarding the suspected criminals and how much theft occurred, has not yet been made publicly available.

Other Cases Of Electricity Theft

In October last year, a Chinese man was convicted of power theft and sentenced to jail for a period of three and a half years. The man, Xu Xinghua, was said to have stolen electricity from a train station to supply his 50 Bitcoin miners and three electric fans which earned him a total of 3.2 BTC worth 120,000 Yuan or $17,400 with an electricity bill of at least 104,000 Yuan ($15,000).

In December last year, a Taiwanese man was also arrested for allegedly stealing electricity worth more than $3 million to mine both Ether (ETH) and Bitcoin (BTC). The accused, Yang, successfully mined both cryptocurrencies worth more than 100 million Yuan ($14.5 million). He was able to do this through about 17 different locations including internet cafes and toy shops which were fronts for his illegal mining.

Also in February this year, a bunch of suspects were arrested by police in the German city of Klingenthal, Saxony, also for stealing electricity which they used to power a cryptocurrency mining farm. Since 2017, the group used about 49 computers in the PGH Elektro electrical services company to consume data estimated to be enough to power more than 30 homes costing about 220,000 euros ($250,053). After a successful raid, police were able to arrest a group of six including 5 men and one woman.

Bitcoin (BTC) Live Price

1 BTC/USD =$7,540.6288 change ~ 0.08%

Coin Market Cap

$136.41 Billion

24 Hour Volume

$2.85 Billion

24 Hour VWAP

$7.55 K

24 Hour Change

$5.7688

Get Free Email Updates!

*Action* Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

I will never give away, trade or sell your email address. You can unsubscribe at any time.

Tolu
Tolu
Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to demystify bitcoin stories to the bare basics so that anyone anywhere can understand without too much background knowledge and add in social research and feedback insights. When he's not neck-deep in crypto news, Tolu enjoys music, loves signing and is an avid movie lover.

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer

LEAVE A REPLY

Please enter your comment!
Please enter your name here

3,229FansLike
2,554FollowersFollow
4,043FollowersFollow

Live Bitcoin Price & Latest BTC Chart News

Today's Latest Crypto News

Brazil Tax Authorities Impose New Regulation to Fine Crypto Traders Who Do Not Report Their Transactions

Back in August this year, the Department of Federal Revenue rolled out various provisions and stipulations that require all Brazilian citizens to report transactions...

Monero (XMR) Hash Rate up 190% after the RandomX but All Red in Price Land

Most recently, the Monero network successfully upgraded to a new mining algorithm aiming to be ASIC-resistant, RandomX. This upgrade led to a surge of 190%...

SpaceChain’s New Milestone: First-Ever Demo of Blockchain Tech on the International Space Station

On Monday, December 5, 2019, community-based space and blockchain-focused platform, SpaceChain sent its blockchain hardware wallet technology to the International Space Station (ISS). As...

Ukrainian Government Finalizes Money Laundering Laws Based on the FATF Recommendations

The Ukranian government has finalized a money laundering law for virtual assets and virtual asset service providers based on the recommendations put forward by...

Telegram Under Scrutiny by the SEC for its $1.7 billion Token Sale; Former Chief Investment Advisor Issued a Deposition to Testify

According to the filings made through the U.S District Court in New York, SEC’s main agenda is to stop the launch of Telegram’s blockchain...

BitcoinExchangeGuide is a hyper-active daily crypto news portal with care in cultivating the cryptocurrency culture with community contributors who help rewrite the bold future of blockchain finance. Subscribe on Google News, see the mission, authors, editorial links policy, investment disclaimer, privacy policy. Got News? Contact us, we are human too. Note: nothing here is financial advice, do your own research thoroughly.