Chinese Communist Party official pleads guilty to helping Bitcoin miners

According to a study published by state-owned regular quality programme Xinwen Lianbo connected Dec. 29, Xiao Yi, erstwhile Communist Party Secretary of the City of Fuzhou, pleaded blameworthy to corruption charges successful the Zhejiang Hangzhou Intermediate People's Court. During his tenure arsenic manager from 2008 to 2021, Yi was accused of accepting implicit 125 cardinal CNY ($18 million) successful bribes related to operation programs and illicit promotions.

In summation to the aforementioned counts, Yi besides pleaded blameworthy to charges related to concern transactions betwixt himself and Bitcoin (BTC) miners from 2017 to 2021. It is unclear if the bid of charges were related. As reported by Xinwen Lianbo:

"During his 2017 to 2021 tenure arsenic the Communist Party Secretary of the City of Fuzhou, Xiao Yi provided enactment to cryptocurrency mining companies successful the signifier of subsidies, superior aid, and energy assurance. These acts were contrary to nationalist regulations, the mentation of New Development, and led to monolithic losses successful nationalist property, starring to adverse consequences."

Citing the request to execute "carbon neutrality" targets and "high vigor costs," the Chinese Government banned each cryptocurrency mining activities connected Sept. 24, 2021. The authorities blocks cryptocurrency miners' entree to energy markets, superior markets, and an wide concern ban. 

However, it appears the prohibition has been hard to enforce, partially owed to crypto mining's decentralized and peer-to-peer nature. In May 2022, Cointelegraph reported that China has returned arsenic the world's second-biggest Bitcoin mining hub despite the ban. The authorities itself besides allows section authorities to enforce a cryptocurrency mining tariff of 0.30 CNY per kWh ($0.0431) of energy usage arsenic an alternate to cutting disconnected vigor successful the lawsuit of discovery. The tribunal has been adjourned for sentencing Xiao Yi successful the upcoming session.

Chinese crypto miners person proven to beryllium resilient contempt a nation-wide crackdown | Source: Cambridge Bitcoin Electricity Consumption Index