Chinese Police Arrest Crypto Miner for Power Theft

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25 June 2018

Authorities in China have arrested a man for allegedly stealing a significant amount of power in order to fuel a clandestine cryptocurrency mine.

Police in the eastern Chinese province of Anhui Province seized more than 200 computers used for bitcoin and ether mining after the local power grid company reported a spike in electricity use, according to Xinhua news agency.

One suspect allegedly stole 150,000 kW hours of electricity between April and May 2018, when the power grid first alerted police of the theft. The Chinese national, identified only by his surname Ma, reportedly told police that he dreamed of making money through crypto mining.

He bought the hardware in April, but later found out the daily power cost was over 6,000 yuan ($921). As a result, Ma said, his mining operation was not profitable at the time of his arrest.

Allegations of power theft have led to the arrest of bitcoin miners in China before. In April, there were at least two cases where bitcoin miners were taken into custody for allegedly stealing power, as previously reported by CoinDesk.

In another instance, six individuals were arrested in Tianjin. Police alleged that the suspects used 600 cryptocurrency miners to generate bitcoin with power taken from the local power grid. Xinhua News agency said that this may have been the “largest power theft case in recent years.”

Crypto miners image via Shutterstock