Bitcoin Mining: Chinese Man Gets 3.5 Year Sentence for Stealing Power to Mine Bitcoin

A man has been handed a three and a half year sentence for illegally tapping and stealing power from a train station in China for crypto mining purposes. According to a report published by The Paper, the sentence, which was served on September 13 by the Datong Railway Transport Court, names Xu Xinghua as the accused.

He was reportedly fined 100,000 Yuan (about $14,500) for stealing electricity from a factory at the Kouquan Railway station to power his 50 bitcoin mining machines. The offense was carried out between November and December 2017.

He was apparently able to mine 3.2 bitcoin worth about $20,000 at current market rates during this period. In addition to the fine and a prison sentence, the court ordered him to cover the electricity bill arising from his bitcoin mining activities. His bitcoin mining machines were also confiscated by the authorities.

Earlier this year, another Chinese citizen was arrested for stealing electricity to power his 200 miners. His bitcoin and Ethereum mining operation was apparently drawing about 6,000 Yuan ($866 worth of electricity) a day, something that soon caught the attention of the electric company.

An investigation launched by the Hanshan County police revealed a meter bypass implemented by the accused in an attempt to avoid billing.

Stealing Power to Mine Bitcoin in China

Bitcoin Mining and Power Theft in China

An absurdly huge number of cases involving stealing of power for crypto mining purposes were reported last year, especially during the months of November and December in China. They coincided with the price boom that occurred towards the end of the year.

The rapid price hike of bitcoin prices caught the attention of investors and newbies alike and led to major FOMO. A scramble for mining-hardware ranging from advanced setups to gaming GPUs soon caused a mining-equipment shortage. Subsequently, many mining companies experienced serious supply issues.

The sheer amount of energy needed for bitcoin mining purposes is immense, and so power theft is a major incentive for amateur cryptocurrency miners looking to avoid eye-watering electricity bills.

On to the number of cases involving power theft in China, authorities reported a sharp increase in crimes related to this last year, especially in Daqing City. In one case, police cracked down on a group of miners who were siphoning off power from the region’s oil production plants.

Twelve operations by the authorities in the city netted over 1,000 bitcoin mining devices over the course of 8 months, preceding December 2017. In one case, inspectors at an oil production plant were trying to find the source of an unfamiliar buzzing sound when they stumbled upon a row of iron shelves decked with mining machines.


This article by Elizabeth Gail was previously published on Coincentral.com

About the Author:

Elizabeth Gail is crypto-enthusiast and a blogger. Her specialties include cryptocurrency news and analysis. When not writing about crypto, she’s out taking part in humanitarian endeavors across the world. You can reach out and engage with her on Twitter and Google Plus.

 

It’s been three years since the minds behind the Minergate platform saw the need to level the mining playing field by providing PC users with the ability to combine their CPU power to mine cryptocurrencies. These cooperative mining pools make it possible for individuals to mine cryptocurrencies profitably in a time when large multimillion dollar data mining centers continue to spring up around the world.  To get a better understanding of the significance of the, let’s take a quick moment to review the current mining landscape.

The Not so Decentralized Cryptomarket

Today, mining is big business and unless you are ready to fork out some serious cash on some new hardware, you may find it difficult to profitably mine crypto in your area. Miners use specially designed mining rigs that are far more efficient at mining than your regular PC. On top of this new technological barrier, huge mining facilities have been popping up around the globe.  These gigantic facilities incorporate up to 15,000 mining rigs in a single location, and many consume as much power as a small city.

All of these developments in the mining arena have made it seem almost impossible for individuals to mine crypto from their home PC or laptop.

Minergate Is Born

It was in March of 2014 when Minergate first unveiled the concept of public mining pools to the world. Mining pools work by combining the processing power of all the computers on the network and then splitting the profits. This allows a person to mine using their home CPU or GPU, thereby eliminating the need to make a large investment in a mining rig setup.

Minergate

What Is Minergate?

Minergate was founded as the first public mining pool for cryptocurrencies utilizing the CrytoNote protocol. Today, this includes a wide variety of coins. You can easily mine a number of the most popular cryptocurrencies in the market including:

The Minergate sign up process is simplistic and doesn’t require any upfront fees. In fact, you only pay fees on the coins that you mine.

Minergate Stats

MG has boosted some impressive statistics since its inception with over 500,000 miners profiting from the use of the platform to date. Minergate also receives around 2,000 new signups a day. The ease-of-use and open nature of the platform make it ideally suited for anyone interested in mining cryptocurrencies on a budget.

Minergate Poolmining

Minergate isn’t alone in the crypto-pool mining space, and there are many options for a potential miner to consider. That being said, Minergate has some unique features that make it stand out amongst the competition in a major way.

Automated Merged Mining – Smart Mining

It shouldn’t be a huge surprise to learn that the guys who first brought the public mining pool concept to the market have now improved upon their design. The Minergate platform features a Smart Mining feature that calculates the current network hash rates and your PC’s power level to determine the most profitable coin to mine.

When initiated, this protocol will automatically select the most profitable coin at that moment and switch to another if the one selected is no longer the best option. This allows a would-be miner to mine multiple coins using nothing more than their home PC. It also provides Minergate users with more flexibility on the platform.

Two-Factor Authorization

Security in the crypto space is paramount and Minergate incorporates Google 2-factor authorization to provide you with an added layer of protection. This security feature requires you to access a time-sensitive code on your mobile device to guarantee that it’s you trying to enter the account.

Pure Coins

All the coins rewarded on the Minergate platform are pure coins in that they all come directly from unlocked block rewards. In this way, Minergate is providing their users with a true mining experience.

Cloud Mining

Minergate owns some of the largest mining facilities in the world and users can choose to rent more Hash power to improve their mining results directly from the platform’s interface. Minergate guarantees 24/7 mining proficiency from their rigs, and considering the sheer size of some of their mining facilities, it’s easy to see how they could accomplish this task.

Minergate – The Gateway to Mining Cryptocurrencies in 2018

Do you want to get into mining?  Minergate is one of the easiest and most cost-efficient ways for you to do so. This platform has proven to be a strong force in the crypto community, and as the mining sector continues to develop, you should expect to see more technological advancements in the field of home PC mining.


This article by David Hamilton was previously published on Coincentral.com

About the Author:

David Hamilton aka DavidtheWriter has published thousands of cryptocurrency related articles. Currently, he resides in the epicenter of the cryptomarket – Puerto Rico. David is a strong advocate for blockchain technologies and financial sovereignty.

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