After a Surge in Power Usage, Police Apprehend Mining Group in China.

According to a wire report from Agence France-Press, a bitcoin mining operation was busted by the Police in eastern China after a surge in local electricity usage. According to the investigators of the incident, the miners stole electricity from a local power provider. “In value, it is the largest case in the amount of electricity stolen that Jiangsu has cracked since the founding of New China, and a rare sight in the whole country,” Zhenjiang police reportedly said to AFP.

By the alleged theft, the group of miners caused a misappropriation of nearly 20 million yuan ($3 million) in electricity costs. This was done with the use of about 4,000 “mining devices,” that were eventually seized by the police. Also alleged by the investigators is that more than 20 people participated in this particular mining operation. An investment platform called Coinshare, published a report that found 50 percent of the global bitcoin computing power was located in southern China. Apparently, in China, Bitcoin mining is still quite popular.

The bitcoin software automatically adjusts its mining difficulty, approximately every 14 days depending on the amount of computing power in the network. Added to that, bitcoin’s surge in price to around $12,000 on Friday caused the difficulty of the mining algorithm to reach record highs.
Bitcoin mining difficulty had reached a new record high above 7.93 trillion as at last week of June. With this level, another 300,000 mining machines could be activated to meet the hashing power needed. By August, the total hash rate this year could peak to a threshold of 70E Hash per second (H/s) as against the 56.77 EH/s in June.
For clarity; mining difficulty falls when fewer machines are used to solve math problems to earn the next payout of newly created bitcoin and on the other hand more computers or machines, mining difficulty rises. This high level of difficulty may have moved these group of miners to direction of their crime ending in the police bust.


Japan’s FSA has 110 Crypto Exchanges on the waiting list for a License

Crypto Self-Regulatory Group backed by Gemini is getting set to Coax Congress

Luno now offers South Africa an option to buy ether with fiat

New Feature on Poloniex – Buy Crypto with Debit/Credit Cards & Withdraw to Bank Accounts

Coinbase sponsored digital card game ‘God Unchained’ Beta Launched


Credits- David Kuhn


Leave a comment

My Newsletter

Sign Up For Updates & Newsletters

[mc4wp_form id="456"]