Chinese Man Arrested for Stealing Electricity for Mining
Xu Xinghua a bitcoin miner from China has been arrested for admitting to the theft of electricity from a train station power grid located in the province of Shanxi. He has been found guilty of illegally channeling electric power worth about $15,000 from the power grid to his mining farm.
Xu Xinghua’s Center Operation
The arrest report has made it known that Xu Xinghua has about fifty mining rigs in his set up and they were all function during the period leading to his arrest. He also has three electric fans which are running consistently for 24 hours.
China is well-known for its cheap electricity globally, so the news of Xu Xinghua electricity theft has been criticized greatly and has been summed up to greed. China cheap electric has attracted many crypto miners in the past. China was originally recognized as the number one mining region before the clampdown of all crypto related activities by the country’s government. With the comprehensive cryptocurrency ban in place, China has witnessed massive crypto capital flight.
Three and a Half Years of Correction
Although a smart idea at first, Xu Xinghua is surely regretting his actions as he will be serving three and a half years jail term. He would also have to pay a fine of 100,000 Yuan ($14,500) and a payment of $15,000 for the electricity consumed. His mining rigs have also been seized according to the recent mining crypto banning laws.
In light of this news, one thing is clear, the Crypto community in China, although under surveillance and massive restrictions, still exist. So even if the government’s plan has worked in pushing out the big fish of the industry resident within the country, they still have small time traders and miners to deal with. Hopefully, other countries following the path of China will learn from this.
