Chinese Police Seize 600 Bitcoin Mining Computers over Electricity Theft!

[Veterock]

Chinese Police in the northeastern port city of Tianjin have reportedly confiscated 600 bitcoin mining computers in a case of alleged electricity theft.

The bitcoin mining equipment was seized after the local power grid operator reported an abnormally high spike in electricity consumption, China’s state-owned press agency Xinhua reported on Wednesday.

The power company observed sudden increases in power loads, the report revealed, up to 28 percent at peak consumption. A subsequent investigation revealed a junction box that had been allegedly tampered with by bitcoin miners who short-circuited the mains to avoid charges.

The city’s police have detained an individual and investigating five others for their alleged involvement in the bitcoin mining operation.

“Eight high-power fans were also seized,” Xinhua quoted Tianjin’s police as stating, adding that “it was the largest case of power theft in recent years.”

An energy-intensive process, cryptocurrency mining rewards miners with coins for creating blocks of validated transactions to add them onto a blockchain. Profits are made when the mining rewards exceed the heightened demands and costs of computing power and electricity, respectively.

China, once the world’s largest cryptocurrency market, is still home to a majority of the bitcoin hashrate due to inexpensive electricity and cheap labor in the mainland. Earlier this year, a reported crackdown led by China’s central bank on crypto mining operations saw the authority claim it could ‘tell’ local governments all over the country to regulate bitcoin miners’ power consumption in a bid to ‘gradually reduce the scale of their ‘production’.

While the report has since been refuted, there is an unmistakable exodus of cryptocurrency miners leaving China. Chinese bitcoin mining giant Bitmain has already established a new subsidiary in Switzerland amid plans of carving an entry into the United States in the power-abundant, cheap-energy state of Washington.


Maybe that's why we are seeing bitcoin price falling?)

[Xester]

Chinese Police in the northeastern port city of Tianjin have reportedly confiscated 600 bitcoin mining computers in a case of alleged electricity theft.

The bitcoin mining equipment was seized after the local power grid operator reported an abnormally high spike in electricity consumption, China’s state-owned press agency Xinhua reported on Wednesday.

The power company observed sudden increases in power loads, the report revealed, up to 28 percent at peak consumption. A subsequent investigation revealed a junction box that had been allegedly tampered with by bitcoin miners who short-circuited the mains to avoid charges.

The city’s police have detained an individual and investigating five others for their alleged involvement in the bitcoin mining operation.

“Eight high-power fans were also seized,” Xinhua quoted Tianjin’s police as stating, adding that “it was the largest case of power theft in recent years.”

An energy-intensive process, cryptocurrency mining rewards miners with coins for creating blocks of validated transactions to add them onto a blockchain. Profits are made when the mining rewards exceed the heightened demands and costs of computing power and electricity, respectively.

China, once the world’s largest cryptocurrency market, is still home to a majority of the bitcoin hashrate due to inexpensive electricity and cheap labor in the mainland. Earlier this year, a reported crackdown led by China’s central bank on crypto mining operations saw the authority claim it could ‘tell’ local governments all over the country to regulate bitcoin miners’ power consumption in a bid to ‘gradually reduce the scale of their ‘production’.

While the report has since been refuted, there is an unmistakable exodus of cryptocurrency miners leaving China. Chinese bitcoin mining giant Bitmain has already established a new subsidiary in Switzerland amid plans of carving an entry into the United States in the power-abundant, cheap-energy state of Washington.


Maybe that's why we are seeing bitcoin price falling?)

Well its partly one of the reasons why the bitcoins price is falling. Due to the banning of cryptocurrency in China the bitcoin holders were forced to sell their bitcoin when it was its peak so they can migrate to other countries such as Japan who have adopted cryptocurrencies. But even though China is the biggest holder of bitcoins due to major mining farms in their region, the closing of exchanges and reducing of power consumption to the miners was just one of the reason of the price drop.

[KingScorpio]

Chinese Police in the northeastern port city of Tianjin have reportedly confiscated 600 bitcoin mining computers in a case of alleged electricity theft.

The bitcoin mining equipment was seized after the local power grid operator reported an abnormally high spike in electricity consumption, China’s state-owned press agency Xinhua reported on Wednesday.

The power company observed sudden increases in power loads, the report revealed, up to 28 percent at peak consumption. A subsequent investigation revealed a junction box that had been allegedly tampered with by bitcoin miners who short-circuited the mains to avoid charges.

The city’s police have detained an individual and investigating five others for their alleged involvement in the bitcoin mining operation.

“Eight high-power fans were also seized,” Xinhua quoted Tianjin’s police as stating, adding that “it was the largest case of power theft in recent years.”

An energy-intensive process, cryptocurrency mining rewards miners with coins for creating blocks of validated transactions to add them onto a blockchain. Profits are made when the mining rewards exceed the heightened demands and costs of computing power and electricity, respectively.

China, once the world’s largest cryptocurrency market, is still home to a majority of the bitcoin hashrate due to inexpensive electricity and cheap labor in the mainland. Earlier this year, a reported crackdown led by China’s central bank on crypto mining operations saw the authority claim it could ‘tell’ local governments all over the country to regulate bitcoin miners’ power consumption in a bid to ‘gradually reduce the scale of their ‘production’.

While the report has since been refuted, there is an unmistakable exodus of cryptocurrency miners leaving China. Chinese bitcoin mining giant Bitmain has already established a new subsidiary in Switzerland amid plans of carving an entry into the United States in the power-abundant, cheap-energy state of Washington.


Maybe that's why we are seeing bitcoin price falling?)

in this case i clearly support the chinese government, they are quite humanist fighting that.

[BrewMaster]

Maybe that's why we are seeing bitcoin price falling?)

what fall? you mean the fall from $8600 to $9700 and now $9100 in one day? that is called a rise. and if this was a real thing the price would have fallen much harder. more like a sharp drop from $9700 down to $7500

Due to the banning of cryptocurrency in China

they have not yet banned anything!

[Asimmo]

It`s a common thing in Russia..
There are dozens of ways, to steal electricity and do not get noticed.
Even if noticed, bribe solves everything instantly .

[hubballi]

Maybe that's why we are seeing bitcoin price falling?)

what fall? you mean the fall from $8600 to $9700 and now $9100 in one day? that is called a rise. and if this was a real thing the price would have fallen much harder. more like a sharp drop from $9700 down to $7500

Due to the banning of cryptocurrency in China

they have not yet banned anything!

You said correct todays fall of bitcoin and other crypto currency was due to the traders fear of hackers will sell the hacked ETH and other coins in the market so before they sell and crash the market, traders sold it before that.

It is true that China only banned ICO investment and stopped the crypto exchange to function till the regulations are not formed to carry on the crypto business. So their is no news of crypto ban in china.

[hase0278]

Maybe that's why we are seeing bitcoin price falling?)

That's not the reason why we are seeing bitcoin price fall today, it is because of weak hands that sell every time they see bad news such as this one. The affected miners didn't dump their bitcoins at all(maybe some did), they might have had just moved out of the country in order to not get affected of the regulation of electricity consumption that might be imposed in China in the next coming days.

[stompix]

Well its partly one of the reasons why the bitcoins price is falling. Due to the banning of cryptocurrency in China the bitcoin holders were forced to sell their bitcoin when it was its peak so they can migrate to other countries such as Japan who have adopted cryptocurrencies. But even though China is the biggest holder of bitcoins due to major mining farms in their region, the closing of exchanges and reducing of power consumption to the miners was just one of the reason of the price drop.

What a load of BS!!!!

There was no cryptocurrency ban in China!!!!
Why would you have to sell your coins in China in order to migrate to Japan? This is stupid!
Do you have any evidence about Chinese holding that many coins to put them in first place?
What reduction of power consumption and what price drop and what is the relation between those two?

[achsan fauzy]

up to this time, China just forbid the ICO, and never banned the use of Bitcoin. Regarding theft of electricity, I think it is reasonable because the use of electricity for mining bitcoin is very large.

[coinwizard_]

There is electricity theft everywhere regarding bitcoin. This is nothing new and we will continue to see more of it in future. Some steal it to power heat lamps for cannabis farms, other to mine bitcoin

[lelangsabun]

because any news are coming to inform about bitcoin price and they think it kind like a bitcoin source so they willing to theft it maybe they mean its kinda like an atm for bitcoin lol

[golek upo]

 on various large countries such as USA, russia and other major countries, electricity theft often occurs. And they steal the electricity instead of to mine bitcoin, but to other needs. And I think the incident is not a cause of the decline of bitcoin. Because currently bitcoin is being increased from 6500 $ to 7500$.

[Veterock]

I have not heard about the theft of electricity in the United States. Where did you hear about this?