China’s government offices used resources to mine bitcoin and other cryptocurrencies

China's government offices used resources to mine bitcoin and other cryptocurrencies

Key facts:
  • 4,699 IP addresses have been examined in the Zhejiang region, suspected of mining cryptocurrencies.

  • The Chinese government imposed sanctions on the operators and seized the mined crypto assets.

One of China’s coastal provinces that has been facing power outages, Zhejiang, reported Thursday that it investigates those who use public resources from the state to mine cryptocurrencies.

This was stated by the Zhejiang Cyberspace Administration in a release disclosed by WeChat, where he highlighted that the investigation, underway since last month, goes against those who mine cryptocurrencies within the government and agencies of the Chinese Communist Party (CCP). Also subject to inquiries are the state companies and public research institutions and higher education.

According to the government entity, the investigation has already examined at least 4,699 internet protocol (IP) addresses in that province, suspected of being involved in the cryptocurrency mining.

In addition, they identified 77 state entities that used public resources to mine bitcoin (BTC), ether (ETH) and other crypto assets, through 184 “suspicious” IP addresses.

After that, several government agencies on site inspected more than 20 public offices, based on 119 IP addresses, and also ordered the closure of all operations, while establishing “disciplinary sanctions” for those responsible.

Authorities seized miners and cryptocurrencies

«The IP addresses involved more than 10 virtual currencies like bitcoin and ethereum. A group of people who violated the disciplines were investigated and the illegal profits were recovered, “they explain.

Something that stands out in the statement is the confiscation of cryptocurrency mining equipment and hardware. RIG and GPU were part of the material that the Chinese authorities seized during the inspection in the places that, that is to say, they did not identify.

According to the entity, the Provincial Commission for Disciplinary Inspection and the Cyberspace Administration of the Communist Party Committee, which is in charge of locating the miners, will undertake to order the relevant entities to track and monitor activities, in addition to addressing “with determination” the use of public resources to mine.

China's government offices used resources to mine bitcoin and other cryptocurrencies
GPUs and mining RIGs seized during inspections / Source: Zhejiang Cyberspace Administration.

They say it is because of carbon, although they insist on the “economic order”

In the publication of the organization, they affirm that the advanced investigation had the purpose of fully implementing a “national rectification work” of the problems caused by mining and cryptocurrency trading, in addition to “promoting the carbon peak and neutralization in an orderly fashion. carbon ‘. They also mention the alleged alteration of the economic order product of crypto-asset transactions.

They excuse that, in Zhejiang, being one of the energy entry provinces, “mining consumes enormous amounts of electricity.” They argue that the “rapid upgrading of mining hardware and competition in computing power” has led to a “large amount of energy consumption”, which runs counter to the carbon and carbon spike of the coastal province.

At the same time, speculation and virtual currency transactions disrupt the economic and financial order, carry the risks of illegal transactions, money laundering, financial fraud and other illegal and criminal activities, and seriously violate the security of people’s property. .

Zhejiang Cyberspace Administration.

China's government offices used resources to mine bitcoin and other cryptocurrencies
Part of the mining hardware seized by the Chinese authorities / Source: Zhejiang Cyberspace Administration.

The hunt continues against underground bitcoin miners

The announcement of the investigation to identify (and punish) the miners in Zhejiang, reaffirms the intention of the Chinese state to hunt down clandestine activity.

As we reported in CriptoNoticias a few days ago, another province, this time that of Jiangsu, in the east of the country, announced the closure of mining operations for bitcoin and other cryptocurrencies.

The Jiangsu Communications Administration (ACJ) stated that it would apply regulatory measures to those miners who still, in their presumption, are operating camouflaged in data centers.

According to China, its position against mining is due to high electricity consumption, which translates into greater pollution, something that does not make much sense when, to this day, continues to be the country in the world that pollutes the most with carbon, according to a study from Rhodium Group.

And in fact, Bitcoin mining, although it has been the subject of accusations for its high demand for electricity, has shown that its carbon footprint is much lower than that of other industries.

We also report that, according to studies by Bitcoin Net Zero, the Carbon emissions related to bitcoin mining during 2020 were 0.1% of the global total.

It should be remembered that all these actions taken against mining occur after, on September 24, the Central Bank of China declared illegal some activities inherent to cryptocurrencies, such as mining, trade and its use as a medium. of payment.

But despite everything, there are still Bitcoin nodes operating in the Asian giant. 138, according to Indeed, it is a hard-to-kill asset.

See also  More than 9,000 Bitcoin miners seized to combat energy crisis

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