Chinese Bitcoin Miner Jailed for Stealing Railway Power

By Bryan Grogan, October 10, 2018

0 0

A man in Datong, Shanxi has been sentenced to three and a half years in prison after it was found that he was stealing power from a nearby train station to fuel his bitcoin mining farm, The Paper reports.  

The sentencing was passed down in Datong Railway Transport Court on September 13 after the man, named Xu Xinghua, mined 3.2 bitcoins over the course of two months. That might seem puny, but 3.2 bitcoins are actually currently valued at in excess of RMB140,000. 

In the process of mining, Xinghua used RMB104,000 of electricity. He was subsequently fined RMB100,000 to go along with his jail sentence, while the court has also ordered Xinghua to reimburse the full amount of electricity used. 

READ MORE: Shenzhen Gangsters Use AI and WeChat to Facilitate Online Casino

Xinghua reportedly stole the power from November to December in 2017, a booming period for bitcoin, from the nearby Second West Yard of Kouquan Railway. In order to power his 50 bitcoin mining machines and three cooling fans, Xinghua connected to power lines at the railway, whilst operating out of a rented house.  

640px-AustrianBitCoinMiningRig.jpg
Bitcoin Mining Rig Image via Wikimedia

Bitcoin mining became big business in China, especially in Shenzhen, when the cryptocurrency reached its highest values last year. As prices have declined, so too has the demand for mining machines. 

While the current price of one bitcoin is approximately RMB45,800, if Xinghua had sold his 3.2 bitcoins in December 2017 he would have received as much as RMB430,000. 

[Cover image via Wikimedia]

more news

Guangzhou Bans Cryptocurrency Promo Events

The move is the latest in a long line of measures aimed at clamping down on crypto exchanges and services.

GZ-SZ-HK High-Speed Railway Opening Date Revealed

The railway will serve 44 destinations throughout the Chinese mainland, including Shenzhen, Guangzhou, Beijing, Shanghai and Wuhan.

9 Hours from Beijing to Hong Kong on New Bullet Train

​High-speed train passengers will soon be able to directly travel between Beijing and Hong Kong in just nine hours.

Fascinating Video Explores Guangzhou Railway Station, Huaisheng Mosque

The second episode of '020 – The Key to Guangzhou' is out now and we've rounded up all three parts for your viewing pleasure!

Will China's Central Bank Ever Accept Bitcoin?

China's outgoing bank head says Bitcoin is not a legitimate method of payment, but will his successor be more open to cryptocurrency?

Trains Grind to a Halt on Guangzhou-Shenzhen High-Speed Line

Equipment failures have resulted in widespread delays and cancellations of high-speed trains between the cities.

China's Cracking Down on Bitcoin Miners

Crackdowns could have devastating effects on a market with a total value over USD230 billion.

0 User Comments

In Case You Missed It…

We're on WeChat!

Scan our QR Code at right or follow us at thatsonline for events, guides, giveaways and much more!

7 Days in China With thatsmags.com

Weekly updates to your email inbox every Wednesday

Subscribe

Download previous issues

Never miss an issue of That's Magazines!

Visit the archives

Get the App. Your essential China city companion.