China Arrests Bitcoin Miner for Stealing Power from Oil Wells

A Chinese man has found himself in police custody after attempting to steal electricity to fuel his Bitcoin mining operation, local media outlet The Global Times reported today.

The suspect allegedly mined Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term through stealing power from one of China’s biggest oil wells. The Chinese national, identified only by his surname Li, had been laying cables through deep fishponds to hide his activities and dodge the electricity bill.

Police were alerted to the crypto mining farm when the head of oil production at Daqing Oil Field reported abnormal electricity usage. This led to the discovery of 20 active Bitcoin mining rigs, which racked up an electricity bill of nearly 50,000 yuan (roughly $7,000). The police used drones to conduct an airborne investigation across an area of two kilometers.

China has sought to crack down on its mining industry in recent months, which has long flocked to areas with cheap and abundant sources of electricity.

Various cases involving the practice have surfaced in the media, including a case in November when a Chinese headmaster was fired after a secret stack of crypto mining machines was found connected to his school's electricity supply. In another instance, six individuals were arrested in Tianjin for using 600 miners to generate bitcoin with power taken from the local power grid.

In addition, China’s National Development and Reform Commission (NDRC) recently published a draft paper that highlighted Bitcoin mining as an undesirable industry for the country.

Bitmain is coming back

Quite the opposite, several prominent bitcoin mining operations who have already moved out of the country are reportedly coming back. For example, Bitmain, the world’s largest miners manufacturer, plans set up operations in southwestern China.

China previously declared war against cryptocurrencies, prohibiting initial coin offerings and clamping down on its promoters. But China’s raid on the virtual asset class, which started in ‎‎September 2017, failed to dampen local investors’ ‎enthusiasm, as many have resorted to other channels to get ‎around the crackdown. ‎

Despite such reservations, the government supported the underlying Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Read this Term technology to revolutionize economic sectors and even included the technology in its roadmap for the nation’s development by 2020.