Chinese Official Sentenced to Life in Prison for Bitcoin Mining Scheme and Corruption Charges

For engaging in illegal commercial activities connected to a big Bitcoin mining operation worth 2.4 billion Chinese yuan ($329 million), a Chinese government official was given a life sentence. Additional corruption-related accusations were brought together with this historic judgement that had nothing to do with cryptocurrencies.

In a recent decision dated August 22, the Intermediate People’s Court of Hangzhou City sentenced Xiao Yi, a former vice chairman and member of the Jiangxi Provincial Political Consultative Conference Party Group, to life in jail. Convictions on allegations of corruption and abuse of authority led to this punishment.

Charges of Corruption and Abuse of Power

The allegations of corruption against Xiao Yi are the result of activities unrelated to the cryptocurrency sector, notably bribery instances that occurred between 2008 and 2021. On the other side, the accusations of abuse of power relate to his function in granting financial and electrical subsidies to Jiumu Group Genesis Technology, a business with its headquarters in the city of Fuzhou. This business formerly ran more than 160,000 bitcoin mining devices.

The Scheme and Cover-Up

The prosecution claimed that Xiao Yi played a key role in hiding the extensive mining activity. In order to hide the scope of the mining project, he reportedly gave orders to the appropriate departments to create statistics reports and modify the categorization of electricity usage. It is important to note that between 2017 and 2020, 10% of Fuzhou’s total power consumption was consumed in Jiumu.

A Guilty Plea and Restitution

In court, Xiao Yi entered a guilty plea and expressed regret for his deeds. He has actively returned the stolen money as part of his punishment. The presiding magistrate of the Hangzhou People’s Court acknowledged that all bribes and their accompanying income had been seized.

This case serves to highlight the importance of responsibility, the legal ramifications of illegal activity in the cryptocurrency sector, as well as more general problems with corruption in governmental organizations.