Chinese police bust an illegal bitcoin mining operation

Chinese law enforcement discovered an illegal Bitcoin mining operation that was being operated under multiple underground burial sites.

Chinese law enforcement discovered an illegal Bitcoin mining operation that was being run under multiple underground burial sites. According to the local news outlet Beijing News report, law enforcement found an illicit mining operation in the northern Chinese city of Daqing. More precisely, the mining operation was located in what appeared to be two burial mounds in the surrounding fields. 

 

The bitcoin mining operation was using stolen electricity.

The Chinese police investigated the area after a local oil firm told law enforcement about unexplained power losses. The officers found an entrance in the vicinity of the mounds, and after some digging, the police discovered Bitcoin mining hardware that was running on stolen electricity. Earlier this week, the local media reported that law enforcement found 54 Bitcoin mining rigs under a dog kennel in the same county in Heilongjiang province earlier the same week. Most of the world’s crypto mining happens in remote areas in China where electricity is cheaply available, and natural conditions favor the mining activities. 

 

Sichuan authorities ban crypto mining activities. 

The government authorities in Sichuan, China, are seeking to prohibit crypto mining in the region entirely. Earlier, a news outlet reported that the Financial Administrative of the Sichuan providence of China issued a notice to its subordinate offices ordering them to guide crypto mining entities to end their mining activities in an orderly manner. It is estimated that 9.96% of the entire Bitcoin hash rate is generated in this region of China. 

This Chinese region has the most favorable conditions for crypto mining as it is known for its cheap energy and naturally cool environment that suits crypto mining activities. The closing of mining activities in Sichuan would be a massive blow to the crypto industry as the area is home to branch offices of crypto mining companies like Bitmain, AntPool, as well as other major mining corporations. 

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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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