Police In China Seize 600 Bitcoin Mining Rigs In Major Crackdown Against Power TheftA bitcoin ATM in Hong Kong (Anthony Wallace/AFP via Getty Images)

Months after the Chinese government announced that it would limit power consumption by cryptocurrency miners and coerce them to exit the business, several groups shifted their mining operations abroad. However, a few of them still do operate out of China, mostly underground to avoid being caught.

Police officials in Tianjin said that on Tuesday (24 April), they had confiscated close to 600 mining rigs and high-end cooling equipment in the city after the local power company complained of unusual consumption patterns. At its peak, there was 28 per cent power loss, leading to it being called the biggest case of power theft in the recent past by the police. Investigators say that the miners might have attempted to avoid paying for the electricity by short-circuiting the electricity meter.

The Central Bank of China had earlier said that it had the power to regulate the use of power by cryptocurrency miners due to the high volumes of electricity consumption. Due to the country’s prominence as an electronics manufacturer, it was a haven for cryptocurrency miners till the government shut down domestic exchanges and initial coin offerings (ICOs).

An Appeal...

Dear Reader,

As you are no doubt aware, Swarajya is a media product that is directly dependent on support from its readers in the form of subscriptions. We do not have the muscle and backing of a large media conglomerate nor are we playing for the large advertisement sweep-stake.

Our business model is you and your subscription. And in challenging times like these, we need your support now more than ever.

We deliver over 10 - 15 high quality articles with expert insights and views. From 7AM in the morning to 10PM late night we operate to ensure you, the reader, get to see what is just right.

Becoming a Patron or a subscriber for as little as Rs 1200/year is the best way you can support our efforts.

Become A Patron
Become A Subscriber