A Chinese resident imprisoned for 3.5 Years for Stealing Electricity from a Railway Station to Support his Crypto Mining business
A Chinese man, named Xinghua has been condemned to three and a half years in prison for thieving electricity from a train station to fuel his Bitcoin mining activities, as detailed by a Chinese news channel on 8th Oct.
As indicated by court records discharged this morning, the ruling was made on 13th Sept at the Datong Railroad Transport Court in the northern Shanxi area of China. Other than the imprisonment of 3.5 years, the accused, was apparently penalized 100,000 yuan (almost $14,500).
Xinghua is believed to have embezzled energy from one of the production lines at Kouquan Railroad last year in the months of Nov and Dec. The embezzled energy was supplied to his 50 Bitcoin mineworkers and 3 electrically powered fans all day and all night. The records expresses that 5 of the mining machines were malfunctioned amid this time.
By April 2018, Xinghua is believed to have effectively excavated 3.2 Bitcoins, gaining approximately $17,400 and accumulating a power consumption of $15,000.
Alongside with the detainment and penalty, the court has instructed Xinghua to pay the expense of the power charges and has seized his mining hardware, The News channel reported.
Crimes of the same sort are not new in China. In mid this year, another Chinese gentleman in Anhui region was captured for endeavoring to rob power to support his allegedly "unbeneficial" mining tasks. The captured individual was said to have embezzled 150 megawatts of energy to enable his 200 PCs that he utilized to excavate both Bitcoin and Ethereum – accumulating electricity costs of more than $930 every day.
Given that the nation is believed to be a cryptocurrency mining hub because of its bounty of affordable electricity and equipment, statements emerged toward the beginning of this current year that the government experts were ready to endeavor to suppress the business.
A spilled update from the People’s Bank of China to a high-ranking governmental web-based controller apparently expressed that Bitcoin mineworkers need to start "exiting" from the nation because they are consuming
"colossal measures of energy to fuel investments in digital monetary forms."
The controller is believed to have instructed municipal governments to employ every single accessible weapon in their store – including
"techniques connected to power costing, land utilization, taxation, and ecological insurance"
– to pressurizing mineworkers to stop their activities.