Culprits behind a Crypto Mining Scheme Arrested by Chinese Police

By Emily Rys | July 13, 2019
Culprits behind a Crypto Mining Scheme Arrested by Chinese Police

The culprits behind an illegal crypto mining scheme have recently been arrested by Chinese police by stealing energy worth of nearly $3 million.     

According to the report of Chinese agency XinhuaNet, 4,000 hardware units have been installed in nine factories across China to mine cryptocurrency such as Bitcoin

As the Zhenjiang-based power supply company reported, by launching the crypto mining scheme, the criminals have stolen power worth of around 20 million Chinese yuan ($2.91 million), as one mining unit could deploy 25 to 50 kilowatt hours of electricity at industrial prices per day.

The investigation came after Jiangsu police received reports from a local energy firm, stating the abnormal spike in electricity consumption. They spent 2 months investigating before detecting a group of 22 suspects allegedly involved in the activity. 

Recently, the Iranian government has reportedly shut down 2 Bitcoin mining sites, locating in deserted factories, and consequently confiscated around 1000 pieces of mining equipment.

Cryptocurrency mining activities in Iran were rendering the power system in the area unstable, which makes it increasingly harder for households, as well as local companies, to gain access to electricity. As stated by the minister, there has been a 7% surge in electricity consumption, and that the power to mine only one coin can power 24 residential households for 12 months.

Tags: , , ,