China raids crypto mining operation, vows to ‘punish’ those responsible

Investigators in China say they’ll “punish” the operators of a secret cryptocurrency mining operation, which was uncovered after a raid in an industrial park.

According to local media, the bust in Dongguan City was carried out by multiple agencies, including the Tangxia Public Security Bureau, Market Supervision Bureau and Power Supply Service Center.

The suspects were told they’d breached new anti-cryptocurrency legislation, which was introduced in China on September 24 as part of a crackdown flagged earlier in the year.

The notice stated that “virtual currency business activities are illegal financial activities” and that cryptocurrency mining “consumed a lot of electricity.”

It was said to be a violation of the ‘Energy Conservation Law of the People’s Republic of China.’ 

The investigators immediately cut power to the site and the person in charge was told to shut down all computers.

Regional authorities say the operators will be “held criminally responsible” and “resolutely punished.”

It’s understood a letter has been sent to relevant authorities, asking that more attention be paid to “mining” behaviours during routine patrols, and that potential offenders be reported.

The price of Bitcoin surged in the weeks after China banned the cryptocurrency and the rally is showing no signs of slowing down, with prominent analyst Plan B predicting Bitcoin could surge to $135,000 within weeks.

Asia Markets Partner