Police in China have reportedly seized 600 bitcoin mining computers found in the city of Tianjin. The seizure happened momentarily after an abnormal surge of electricity was noted on the local power grid. The incident is being reported as the ‘largest power theft case in recent years’ within the country.
Cryptocurrency mining is a heavily restricted activity in China because the government no longer wants people using such huge amounts of electricity to generate coins and validate transactions. The argument is that the resources used to mine are causing a strain on the country and are therefore exploiting China’s national grids. In 2017, China was home to a significant amount of bitcoin miners as the electricity in the country is generally cheaper than in other countries, making the act of mining more lucrative than most nations. The most effective method that China uses to catch crypto miners is by having people report to the police whenever there is abnormal or unusual activity regarding the local power grids. This is an easy way of finding people who have many mining rigs set up, but it does not always find people who are only running one or two mining apparatus’.
In addition to the computers that were confiscated, ‘Eight high-power fans’ were also taken – they were most likely used to keep the mining rigs from overheating during their activity. Five people are currently under arrest, and another individual has been detained.
This is yet another example of China’s cold stance towards cryptocurrency. The way it is distancing itself from the mining community is similar to the way it has distanced itself from ICOs.
Kai is a cryptocurrency copywriter and professional trader. He can often be found investigating various cryptocurrencies, whitepapers, and blockchain technologies. Kai has been a professional writer for 5+ years, and has invested in 50+ different coins and tokens. He also currently studies Law and Philosophy at university.