- Bitcoin miners in China have been arrested after stealing $3 million worth of electricity
- Miners need large amounts of energy to operate
Law enforcement authorities in China have shut down a local mining farm after they registered an increase in the local energy usage. Mining activities require miners to use large amounts of electricity. The information was released by Agence France-Press on July 12.
Bitcoin Miners Busted In China
Police in eastern China shut down an illicit Bitcoin miner facility that was using stolen energy to power the ASIC miners they purchased. As per the report, these individuals stole around $3 million worth of electricity.
Agence France-Press informs that around 4,000 mining devices were confiscated from these users in Zhenjiang, Jiangsu province. Apparently, this was the largest case ever registered for electricity theft since the founding of New China.
Police mentioned about this issue:
“In value, itis the largest case in the amount of electricity stolen that Jiangsu has cracked since the founding of new China, and a rare sight in the whole country.”
China is one of the countries with the largest number of miners of Bitcoin (BTC) and other cryptocurrencies. In order to mine in an efficient way, miners should have a cold climate to reduce the energy use for cooling systems, a stable economic situation and low electricity prices. This would allow miners to be more competitive and to remain operating in the market for a long period of time.
In this case, the individuals were mining Bitcoin without paying for electricity, which means that they had a large profit compared to other miners around the world.
Bitcoin’s hash rate has been expanding for a long period of time and it has reached new all-time highs a few days ago. This shows that there is a growing interest from miners to enter the space and start earning and protecting the network.