Chinese authorities seize 7000 bitcoin mining rigs and arrest 72 Cloud Token operators

Chinese authorities seized nearly 7,000 mining rigs that ran on stolen electricity and arrested 72 multi-level marketing scheme operators for alleged fraud.

According to local reports, China police forces from the city of Tangshan seized nearly 7,000 bitcoin mining rigs that allegedly used stolen electricity. The seizure of bitcoin mining rigs in such a huge number was a result of “special operations to combat the crime of power theft.” Chinese police force also arrested 72 Cloud Token operators for running a multi-level marketing Ponzi scheme.

 

China is responsible for 65% of the total bitcoin mining.

Chinese bitcoin miners control 65% of the crypto network’s processing power. China’s Sichuan province produces 54% of the total global hash rate. Recently, China has been cracking down on crypto-related businesses in the country. Several companies have shut down or stopped providing services to local users in the last month.

 

72 Cloud Token operators arrested

Chines authorities also arrested 72 Cloud Token operators in the city of Taiyuan, Shanxi. According to several media reports, it is a Chinese multi-level marketing scheme with high referral fees that started operating earlier this year. Reportedly, Cloud Token is quite similar to Plus Token Ponzi scam that many believe was behind the crashing crypto prices. Allegedly, Cloud Token scammed 30 million yuan ($4 million) from more than 300 victims. The company allegedly sold blockchain-based tokens to investors with fake promises and worked like a multi-level marketing company.

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Jai Pratap
Jai Pratap
A Mass Media Graduate who loves to write. Jai is also a sports enthusiast and a big movie buff. He loves to learn new things.

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