Chinese Bitcoin Miner Goes To Prison For Stealing Electricity
In the People's Republic of China, a court decision was taken against the miner Xu Xinghua accused of stealing electricity worth $15,000 while mining bitcoins, cnLedger reports on Twitter citing The Paper.
Chinese guy sentenced to 3.5 yrs in prison and pay ~$14.5K in fines for stealing ~$15K worth of electricity to mine 3.2 $BTC. Report says the criminal was mining w/ his 50 miners (5 went broken later) 24x7 for months and profited only ~$1.5K— cnLedger (@cnLedger) 8 октября 2018 г.
Xu Xinghua was sentenced to 3.5 years' imprisonment and must pay a fine of $14,500.
The accused began to mine bitcoins in November 2017, using electricity of the Kouquan railway station in the Jiangxi province. The miner used 50 units of equipment to mine cryptocurrencies, which worked around the clock, and five of them subsequently broke down. As of April 2018, the miner’s net income, excluding the electricity expenditures, amounted to $1500, although it was reported that he managed to mine only 3.2 BTC.
Recently, many crypto experts have noted that it becomes unprofitable to mine cryptos, especially for individual miners. They need to resort to some tricks or law violations, as in the case with the sentenced, or to abandon this activity.
It is somewhat easier for large mining companies to work as they have the resources and capabilities to use renewable energy sources, or move their business to countries with low electricity tariffs.
As previously reported, low electricity prices in the United States attracted the Chinese company Wuhan General Group, which in September announced plans to transform the US military establishment into a crypto mining center.