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Why did China seize 4,000 cryptocurrency mining units?

Why did China seize 4,000 cryptocurrency mining units?
Asked by
Craig Nicholas categorie-icon time-icon3 months ago
1 Answer Answer Question

Ilija Rankovic
Answered time-icon3 months ago

As it is already known, Chinese police arrested 22 suspects for allegedly mining cryptocurrencies illegally. The illegal mining has reportedly cost the country $3m in energy. Over 4,000 hardware units have reportedly been confiscated by police in the Jiangsu region, which were being used to mine cryptocurrencies at nine factories.

Officers investigated a sudden spike in electricity consumption, which was ultimately traced to the illegal activity at the factories. The investigation lasted almost two months.

A lot of electricity is required to run the cryptocurrency mining rigs as each mining unit was deploying 25 to 50 kilowatt hours of electricity per day. At industrial prices, the estimated loss of electricity translated into dollars came out at just over $2.9m. This information was reported by the Zhenjiang-based power supply company.

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