Moneycontrol
Last Updated : Apr 26, 2018 03:12 PM IST | Source: Moneycontrol.com

China seizes 600 bitcoin mining computers over electricity theft

The official investigating the alleged crime found that the junction box of the suspected power user's electricity meter had been short-circuited which is a typical way to avoid billing

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Chinese authorities have seized 600 bitcoin mining computers after a local power grid in Tianjin reported abnormal electricity consumption.

Police in north China's Tianjin Municipality regarding it as the largest power theft in recent years also confiscated eight high-power fans supposedly used for cooling the computers on Tuesday, reported Chinese news agency Xinhua.

The power company, which reported the alleged theft, noticed a sudden spike in line loss on one electricity line, up to 28 percent at the peak. The phenomenon is usually closely related to an increased load current.

The official investigating the alleged crime found that the junction box of the suspected power user's electricity meter had been short-circuited which is a typical way to avoid billing.

As per the report, five people are under investigation and one person has been detained.

Also Read: Energy consumed by bitcoin miners around the world is more than over 150 countries

Mining bitcoin is an energy-intensive task as it requires computers with high processing power. The monthly electric charge of 600 such computers in China is estimated at hundreds of thousands of yuan (1 yuan= Rs 11).

The central bank of China had earlier in the year recommended restrictions on electricity supply to bitcoin miners.

In January, China accounted for over 70 percent of the bitcoin network’s collective hash rate. Lately, the companies wary of such curbs have already started looking for options elsewhere. Reportedly, bitcoin mining giant Bitmain had set up a branch in Zug, Switzerland which is also known as crypto-valley.
First Published on Apr 26, 2018 03:12 pm
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