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Man in China was sentenced to 3.5 years in jail for illegal cryptocurrency mining

Chinese citizen was sentenced to 3.5 years in prison for misusing electric power from a train station in mining bitcoins, as reported yesterday by local media outlet The Paper.

According to the court documents released on October 8, Xu Xinghua, a Shanxi province dweller, was sentenced to three and a half years in jail. He will also be fined 100 000 yuan (around $14 500) to repair the damages.

Xu Xinghua was convicted for stealing electricity from one of the facilities at Kouquan Railway back in November and December 2017 to power his 50 bitcoin miners and three electric fans. According to the investigation, he managed to mine 3.2 BTC worth 120 000 yuan (about $ 17 400).

This case is not precedential for China. Back in April, Chinese police confiscated 600 cryptocurrency mining rigs in the city of Tianjin, after the local power grid operator reported abnormal electricity usage.

Chinese authorities have been proceeding with their anti-cryptocurrency campaign since 2017. However, the most evident result of this is seen in the gradual decline of the country’s share in the global cryptocurrency market.