Chinese Bitcoin Mining Base Reportedly Caught Stealing Electricity, But There’s a Catch

Recent Chinese reports informed of hidden Bitcoin mining rigs stealing electricity in the northern city of Daqing. Interestingly, the perpetrators were concealing their operation under two mysterious grave mounds in a relatively empty field.

BTC Mining Operations In Hiding

According to the recent report, a Chinese oil field company sent a tip to local police asking them to investigate suspicious power losses near Daqing. Upon arriving at the scene, the police officers spotted something somewhat mysterious – two grave mounds lying in the field.

 abacusnewsBitcoin Mining Rigs Hidden Below Mounds In China. Source: Abacusnews

The officers of the law inspected the area and noticed an entrance near one of the mounds, the report continues. After extensive digging, they found Bitcoin mining rigs using the mounds as a hiding spot.

During the subsequent investigation, the police discovered that the people behind the mining operations were actually stealing electricity. Due to the vast usage of electricity needed to power the mining rigs, they caused the power losses, which raised the initial suspicion.

While this case may sound strange at first to some, this may not be an isolated incident. In April this year, police officers also located another Bitcoin miner with 54 hidden mining rigs in the same province. Instead of using mounds as cover, however, he had the rigs installed under a dog kennel.

China And Bitcoin Mining

Although cryptocurrency trading is illegal within the borders of the most populated nation, Bitcoin mining is not. As such, numerous companies are utilizing the country’s cheap electricity, and China has become a global leader.

Per the recently launched Bitcoin Mining Map by a Cambridge University team, the country controls over 65% of the BTC hashrate. The countries situated after China are not even close as the second-seeded US is responsible for 7.24%, and Russia is next with 6.90%.

 Cambridge UniversityBitcoin Hashrate By Countries. Source: Cambridge University

The second-most explored region in the country for Bitcoin mining – Sichuan – recently came up with a new reform to provide better and cheaper opportunities for miners. It planned to combine the vast water resources in the area with the advantages of hydropower to lower the electricity costs.

People familiar with the matter estimated that during the upcoming rainy season, prices could drop to 0.20CNY ($0.03).

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The post Chinese Bitcoin Mining Base Reportedly Caught Stealing Electricity, But There’s a Catch appeared first on CryptoPotato.

Publication date: 
06/02/2020 - 19:30
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