Bitcoin

Chinese Police Clamps Down Fraudulent Bitcoin Miners and Scammers

In a major clampdown, the police forces hailing from Tangshan city, China have confiscated 6,890 bitcoin rigs operating in the region, stated the report furbished by the China Central Television, the state broadcaster on Monday. The report suggested that the strict action was a joint effort of security agencies of multiple regions in the Chinese territory along with the State Electric Power Department with an aim to fight the burgeoning problem of power theft.

The crucial report released by CCTV affirmed that the Hebei Tangshan Police officials kept a scrutinizing view to find a solution to their suspicions. They probed into the premises of over 70,000 households, mines, villages, factories, etc. in association with the power supply department and other entities. During this investigation, the cops detected the presence of an unclaimed private transformer in a village in Shuangqiao Town, Tangshan, Hebei. Soon, the officials got affirmed that the transformer was being used to mine bitcoin and so barged on to the site and captivated 1,906 bitcoin miners from the place.

During the probe, the cops got another major hint and followed the clues to find three high-power transformers along with 790 bitcoin mining machines. The cops seized the transformers as well as the machines on account of electricity theft. The police officials revealed that the electricity which was fraudulently used by the miners on a daily basis was sufficient to cater to the electricity requirements of over 5,000 houses for a day.

Apart from the Hebei crackdown, the police officials also gave a major jolt to the bitcoin miners who were illegally involved in the consumption of electricity. A video released by social media platform Weibo on Monday showed the police forces arrested 72 Cloud Token operators from the city of Taiyuan, Shanxi province, China. The video caption stated that the cops were able to discover the scam that involved more than 30 million yuan dwindled from over 300 victims.

Recently, the Chinese media reports highlighted the seizing of 7,000 mining rigs that were involved in electricity theft in one of the provinces of the country.

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Trevor Holman

Trevor Holman follows crypto industry since 2011. He joined CryptoNewsZ as a news writer and he provides technical analysis pieces and current market data. He is also an avid trader. In his free time, he loves to explore unexplored places.

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