Chinese Police Find Secret Bitcoin Mining Operation in Suspected Tombs

Chinese law enforcement discovered a Bitcoin (BTC) mining operation in what appeared to be multiple underground burial sites.

Local English-language news outlet Beijing News reported on May 31 that law enforcement found an illicit mining operation in the northern Chinese city of Daqing. More precisely, the mining operation was located in what appeared to be two burial mounds in the surrounding fields.

Mounds that housed the Bitcoin mining hardware. Source: Beijing News

Bitcoin mining with stolen electricity

Police decided to investigate the area after a local oil firm told law enforcement about unexplained power losses. The officers found an entrance in the vicinity of the mounds and — after some digging — discovered Bitcoin mining hardware that was running on stolen electricity.

Local media reported that, earlier the same week, law enforcement found 54 Bitcoin mining rigs under a dog kennel in the same county in Heilongjiang province.

Cryptocurrency mining operation under a dog kennel. Source: GNW

China cracks down on Bitcoin mining operations

As cryptocurrency prices started to increase again, so did people’s willingness to get into cryptocurrency mining. 

However, the government of the Chinese province of Sichuan recently announced that local firms must cease their cryptocurrency mining operations. This is particularly noteworthy as, according to a Cambridge University study, the province is responsible for nearly 10% of the global Bitcoin hashrate.