Hydropower plant fined for aiding illegal crypto mining

TL;DR Breakdown

  • Hydropower plant fined for helping illegal miners
  • The plant will forfeit ¥21,747 to the government
  • Authorities are fishing for criminals

A Hydropower plant located in the Hubei province of China has been fined for illegally supplying resources to miners in the region. According to reports, the plant has been mandated to pay about $6,528 for its crimes. In the statement by the authorities, the plant was charged with one offense of supplying electricity using illegal means to aid the activities of miners located around the province.

The hydropower plant forfeits ¥21,747 to the government

According to further details in the document, the authorities will seize all the profits of more than ¥21,747 that the Hydropower plant made. One year ago to this month, China started a crackdown on crypto miners and their activities, which will eventually lead to the country banning the activities in September. However, the ban has not triggered a stop on the part of illegal miners as they are still actively carrying out their activities in secret.

At the beginning of the year, China was second only to the United States of America in the total hash rate under its control, with the latter holding 37.8% while the former controlling 22.1% of the hash rate. With some mining outfits choosing to do their activities in secret, others have moved their facilities out of the country.

Authorities on the lookout for criminals

With China shutting down mining rigs, there has been news of corruption among the ranks of the government on all levels. One of the noted reasons why miners thrive underground is the believed use of guanxi by Chinese businesses. This term refers to a situation where authorities carry out favors for companies to build a beneficial relationship. Several residents noted that people in the government hierarchy had also collected fees that they claimed would go directly into the government purse before the order was declared in September.

One noticeable case was a former province employee who was relieved of his duties after using his office to help crypto miners despite the nationwide ban. However, authorities are relentlessly hunting for these underground mining centers and the several Hydropower plants allowing them to carry out their operations. There are also on the lookout for the several people in the government that are helping these people flout the laws and carry out a smooth operation. They risk jail terms and a forfeiture of their entire profits should they get caught by authorities.

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Owotunse Adebayo

Adebayo loves to keep tab of exciting projects in the blockchain space. He is a seasoned writer who has written tons of articles about cryptocurrencies and blockchain.