On 24th of April, Chinese official news agency Xinhua reported that cops seized 600 crypto-mining hardware in the city of Tianjin located in the northern part of the country. Mining is a profitable profession only when the rewards gained while mining exceeds the consumption of power, providing a huge profit. The cryptocurrency and blockchain companies are exclusively dependent upon the mining business. In order to achieve higher profits, few mining companies or individuals are illegally procuring electricity.
The police authorities conducted the raid following a complaint from the electricity board, noticing abnormal power usage. Bitcoin mining hardware’s require large amounts of electricity for its optimal usage; hence mining tools sucks up a large amount of power.
It was known after an investigation that the mining company had short-circuited the ‘electricity reading meter’ to avoid the electric bill. The case is registered under the complaint of ‘power theft’; reportedly this is the largest power theft of the year. According to the power supply company, the consumption was hiked to 28%.
Chinese Central Bank has been trying to maintain, regulate and manage mining operations occurring all over the country. China used to be the largest player in the cryptocurrency market and currently houses a majority of mining operations due to its cheap electricity and workforce.
The mining operations are getting shifted to Switzerland as it provides a colder environment and cheaper power, augmenting the revenue.
Brady, a Reddit user comments:
“Not surprising and also understandable. The article mentions “large-scale power theft,” hinting that these guys likely weren’t paying for the absurd amount of electricity they were using.”
Lance, a crypto-critic says:
“I’ve also heard stories of companies in China obtaining government tech grants under false pretenses and just spending their grants on mining equipment. The Chinese gov’t is trying to crack down on these sorts, as any reasonable gov’t would.”
Kodaline, a crypto-enthusiast says:
“Where there is potential for Easy Gain, People are on it! It looks like the Police stumbled on something that should not have been there.”
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