Police bust Bitcoin miners for stealing $3mn in electricity


Police in eastern China have busted a ring of illicit Bitcoin miners who stole nearly $3-million worth of electricity to generate the digital currency, prompting a local power company to tip-off investigators, authorities said.

A decentralised virtual currency, Bitcoin can be produced or “mined” by banks of computers solving complex algorithms. The mining process can be very expensive on a large scale because it requires cutting-edge technology and vast amounts of electricity.

Police in Zhenjiang in eastern Jiangsu province said officers confiscated almost 4,000 mining devices from an illicit Bitcoin operation that stole nearly 20 million yuan in power.

“In value, it is the largest case in the amount of electricity stolen that Jiangsu has cracked since the founding of New China, and a rare sight in the whole country,” Zhenjiang police said in an online statement.

bitcoin

The authorities said they were originally tipped off by a local power company, which reported abnormal electricity usage.

Police have taken “compulsory measures” against more than 20 criminal suspects, and the case is under investigation, they added. Tech Matters: Cryptocurrencies, Bitcoin and the Blockchain

According to a study last year, cryptocurrency mining consumes more energy per year than many countries — with more than half of mining farms located in China.

Besides electricity theft, other Bitcoin-related crimes include hacking cryptocurrency owners.

Last August, Chinese police in the northern city of Xi’an arrested three suspects who had allegedly stolen assets worth 600 million yuan by hacking the computers of victims who owned Bitcoin and other virtual currencies.

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Source: eNCA

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