Police Uncovers an Illegal Bitcoin Mining operation in China


Chinese law enforcement discovered an illegal Bitcoin mining operation that was being operated under multiple underground burial sites.

June 3 2020 | AtoZ Markets – Recent Chinese reports informed of hidden Bitcoin mining rigs stealing electricity in the northern city of Daqing. Interestingly, the perpetrators were concealing their operation under two mysterious grave mounds in a relatively empty field.

Chinese Bitcoin mining operations go hiding

According to the recent report, a Chinese oil field company sent a tip to local police asking them to investigate suspicious power losses near Daqing. Upon arriving at the scene, the police officers spotted something somewhat mysterious – two grave mounds lying in the field.

Bitcoin Mining Rigs Hidden Below Mounds In China. Source: abacusnews

The officers of the law inspected the area and noticed an entrance near one of the mounds, the report continues. After extensive digging, they found Bitcoin mining rigs using the mounds as a hiding spot.

During the subsequent investigation, the police discovered that the people behind the mining operations were actually stealing electricity. Due to the vast usage of electricity needed to power the mining rigs, they caused the power losses, which raised the initial suspicion.

While this case may sound strange at first to some, this may not be an isolated incident. In April this year, police officers also located another Bitcoin miner with 54 hidden mining rigs in the same province. Instead of using mounds as cover, however, he had the rigs installed under a dog kennel.

China and Bitcoin mining

Although cryptocurrency trading is illegal within the borders of the most populated nation, Bitcoin mining is not. As such, numerous companies are utilizing the country’s cheap electricity, and China has become a global leader.

Per the recently launched Bitcoin Mining Map by a Cambridge University team, the country controls over 65% of the BTC hashrate. The countries situated after China are not even close as the second-seeded US is responsible for 7.24%. Meanwhile, Russia is next at 6.90%.

Bitcoin Hashrate By Countries. Source: Cambridge University

Sichuan authorities ban crypto mining activities

The government authorities in Sichuan, China, are seeking to ban crypto mining in the region entirely. Earlier, a news outlet reported that the Financial Administrative of the Sichuan providence of China issued a notice to its subordinate offices ordering them to guide crypto mining entities to end their mining activities in an orderly manner. It is, however, estimated that 9.96% of the entire Bitcoin hash rate is generated in this region of China. 

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