Chinese Official Sentenced for Bitcoin Mining and Corruption
- Yi took bribes to promote people in government service and help them win government contracts.
- China currently bans crypto mining activities and crypto trading.
Local sources in China have revealed that the Intermediate People’s Court of Hangzhou City has sentenced Xiao Yi, a government official, to life in prison for charges related to corruption and abuse of power for aiding a Bitcoin mining business valued at 2.4 billion Chinese yuan ($329 million).
Although the corruption charges are unrelated to crypto activities, they revolve around allegations of bribery from 2008 to 2021. Prosecutors accused Yi of abusing his powers by providing electricity and financial subsidies to Jiumu Group Genesis Technology, a company involved in Bitcoin mining, between 2017 and 2021. Jiumu consumed 10% of Fuzhou’s overall energy consumption from 2017 to 2020.
Yi reportedly committed these crimes while he served as secretary of the Fuzhou City Committee in Jiangxi Province, director of the region’s People’s Government Office in Beijing, and vice chairman of the Jiangxi Provincial Committee.
According to the prosecution, Yi “covered up” the mining operation by ordering the appropriate departments to forge statistical data and manipulate the classification of electricity consumption.
Prosecutors claim he used his connections and position to enrich himself, which was against national interest and caused great losses to the people of China. Yi reportedly accepted bribes to promote others and also help them win public projects. Interestingly, the former government official admitted the charges, turned over some of his property, and entered a guilty plea.
Since 2018, China has required local governments to help mining companies exit the country and has banned the development or operation of crypto mining activities. Although crypto ownership is not deemed a crime in China, the country forbids crypto transactions, fiat-to-crypto onboarding, etc.
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