CRYPTOCURRENCIES

Illegal BTC block reward miners busted in China’s tombs

Law enforcement authorities in China have busted an illicit BTC block reward mining ring that had been operating out of underground burial sites, in the latest action against illegal BTC block reward miners.

According to local media reports from Beijing, police identified multiple sites in connection with the scheme in northern Chinese city of Daqing following complaints from a local oil firm about unusual power outages in the area.

After investigating the surrounding area, police stumbled across entrances to two burial sites where illegal block reward mining rigs were operating, powered by stolen electricity.

The news follows reports from earlier in the week that police had found 54 illegal rigs under dog kennels in the same region of Heilongjiang province.

The spike in detection of illegal rigs in recent weeks comes amid an uptick in digital currency prices, often a driving factor in inspiring more block reward miners to increase their capacity.

Despite the recent BTC halving, some still choose to process the digital currency illegally, taking advantage of stolen electricity to power rigs for profit.

It comes at a time of increasing restrictions in China on digital currency transaction processing firms. Despite being in support of blockchain technology and innovation in the sector, China has taken a notoriously hard line approach to digital currency.

Most recently, the local government in Sichuan told all digital currency processors to shut down with immediate effect, which could have a substantial impact on global processing volumes. At the moment, the province accounts for 10% of the global hash rate for BTC.

The bust shows the lengths some are prepared to go to unlawfully process BTC. Despite dwindling rewards for BTC block reward miners, it seems those determined to make a quick buck are still turning to BTC block reward mining to take advantage of minor fluctuations in price.

New to Bitcoin? Check out CoinGeek’s Bitcoin for Beginners section, the ultimate resource guide to learn more about Bitcoin—as originally envisioned by Satoshi Nakamoto—and blockchain.

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