Chinese Police Find Secret Bitcoin Mining Operation in Suspected Tombs

Published at: June 3, 2020

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.

Tags
Related Posts
Bitmain stops shipment of Antminer crypto mining rigs into China
Bitmain, a Chinese manufacturer of cryptocurrency mining equipment, has been forced to stop its business in China from Oct. 11 following the crypto ban imposed by local authorities. In addition to China’s blanket ban on crypto operations, the company has attributed the move to stop shipping Bitcoin (BTC) and cryptocurrency mining rigs as a response to China’s carbon-neutral policies. According to Bitmain’s announcement: “From October 11, 2021, Antminer will stop shipping to mainland China. For customers in mainland China who have purchased long-term products, our staff will contact them to provide alternative solutions.” While the company has yet to reveal …
Bitcoin / Oct. 10, 2021
Huobi outlines plan for Chinese investors after halting crypto trading
The uncertainties sparked by China’s blanket ban on crypto trading have taken a downturn as homegrown crypto exchanges such as Huobi take proactive measures to protect and return existing investments residing on the mainland. Speaking to Cointelegraph in this regard, Du Jun, co-founder of Huobi Group, said that the crypto exchange wants to ensure the safety of the users’ assets as part of its social responsibility: “Customers will be able to transfer their assets to other exchanges or wallets over the next few months. Specific measures and operating rules will be outlined in future announcements.” Citing a possibility of a …
Bitcoin / Sept. 27, 2021
Chinese hydropower plants on sale as crypto miners move abroad
Small-scale hydroelectric plants in China are reportedly looking for new customers as crypto miners go abroad amid a nationwide crackdown on mining activity. According to the South China Morning Post (SCMP), advertisements for small-scale hydro plants with 50-megawatt capacity have surged on Chinese secondhand e-commerce platforms such as Xianyu. According to the SCMP, some sellers claimed that their listings were unrelated to the cryptocurrency mining industry, while others said that their bids came as a result of the recent crackdown on crypto mining. One seller reportedly said that small dams rely on crypto miners for a customer base because they …
Bitcoin / June 29, 2021
Kosovar government halts crypto mining amid power crisis
The government of Kosovo has ceased crypto mining in the country owing to power constraints during the winter season. Kosovo's minister of Economy, Artane Rizvanolli, has decided to stop crypto mining following a recommendation from the Technical Committee on "Emergency Measures for Energy Supply," according to a report by local outlet Gazeta Express. The report notes that the government made the decision after Kosovo's power supply fell below the stipulated level, and it began to impose electricity cuts during peak usage periods. According to Rizvanolli, the government decided to establish a technical committee to evaluate emergency energy supply strategies in …
Bitcoin / Jan. 4, 2022
Nuclear and gas fastest growing energy sources for Bitcoin mining: Data
The electricity mix of Bitcoin (BTC) has drastically changed over the past few years, with nuclear energy and natural gas becoming the fastest growing energy sources powering Bitcoin mining, according to new data. The Cambridge Centre for Alternative Finance (CCAF) on Tuesday released a major update to its Bitcoin mining-dedicated data source, the Cambridge Bitcoin Electricity Consumption Index (CBECI). According to the data from Cambridge, fossil fuels like coal and natural gas made up almost two-thirds of Bitcoin’s total electricity mix as of January 2022, accounting for more than 62%. As such, the share of sustainable energy sources in the …
Bitcoin / Sept. 27, 2022