Chinese authorities have confiscated 6,890 Bitcoin-Asics in the Kaiping district of Tangshan near Beijing, according to local media. Another step in the fight against cryptocurrencies – or is the government mining Bitcoin itself?
According to China Central Television (CCTV), Tangshan police, in collaboration with the State Electric Power Department and other departments, have conducted extensive inspections of more than 70,000 households for their electricity.
Factories, mines, farms, 3,061 traders, 1,470 municipalities and villages were inspected.
During the investigation, the Chinese police initially found a private transformer that was suspected in a village area in Shuangqiao City, Kaiping District, Tangshan, Hebei.
This privately connected transformer was used to mine Bitcoin, with 1,906 Bitcoin confiscated as Asics on the site.
The police followed the trail and confiscated three high-performance transformers and 790 mining rigs for Bitcoin, which also stole electricity in a nearby village.
A total of 52 high-power transformers and 6,890 Asics were confiscated, and the Chinese police also intend to follow up the theft of the electricity.
The allegations are that these miners stole electricity, with the police being warned by the electricity supplier itself. The had noticed an unusually high power consumption.
Bitcoin mining itself is not illegal in China, but the Chinese Communist Party is hostile to the cryptocurrency, as crypto exchanges are still banned in the world’s second largest economy.
It is not clear what exactly the government intends to do with these Asics. They would be expected to auction them off, but in places like Venezuela, the authorities use confiscated Bitcoin Asics to mine the cryptocurrency for themselves.