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Chinese official sentenced to life in prison for Bitcoin mining and corruption

a Chinese government official convicted Sentenced to life imprisonment for illegal business activities related to running a Bitcoin mining business (bitcoin) from 2.4 billion Chinese yuan ($329 million) and for unrelated claims corruption.

According to local media reports, on 22 August Hangzhou City Intermediate People’s Court found guilty xiaoyiFormer member and vice chairman of the Jiangxi Province Political Consultative Conference Party Group, He was sentenced to life imprisonment for corruption and abuse of power.

Corruption allegations related to non-cryptocurrency related activities conducted from 2008 to 2021. Allegations of abuse of power that arose between 2017 and 2021 stem from the provision of electricity and financial assistance. Jiumu Group Genesis Technologya company based The city of Fuzhou, which at one point operated more than 160,000 Bitcoin mining machines.

According to prosecutors, Yi allegedly “closed” instructing the relevant departments to falsify statistical reports and change the classification of electricity consumption.. From 2017 to 2020, Jiumu’s electricity consumption accounted for 10% of Fuzhou’s total needs. “Yi pleaded guilty and repented, voluntarily returned the stolen funds, and all bribes and profits were confiscated”The Hangzhou People’s Court judge wrote.

Right now, China bans all types of crypto transactions, exchanges and transitions from fiat to crypto. The Chinese court ruled on August 3 that the $10 million Bitcoin loan agreement was invalid due to the country’s restrictions and that it was not possible to legally collect the debt. a Chinese citizen on August 14 convicted with Nine months in prison for helping an acquaintance buy Tether (USDT), earns $20 from the process.

Former Chinese government official Xiao Yi awaits sentencing. Source: Hangzhou City Intermediate People’s Court

Translation of Matteo Carrone

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