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Chinese Police Report Raids Against Illegal Crypto Activities

25 December 2019 14:26, UTC
Chinese Police Report Raids Against Illegal Crypto Activities

Chinese police arrested more than 6,800 pieces of mining equipment in the city of Tangshan, as per the CCTV channel. According to the report, this is the result of a “special operations to combat the crime of power theft” carried out by the public security authorities in conjunction with the State Electric Power Department. In another city, Taiyuan, 72 Cloud Token project operators were arrested for fraud.

Tangshan police reported comprehensive inspections of more than 70,000 objects for illegal connection to the power grid. During the investigation, several private transformers and mining rigs used for mining bitcoins were discovered and seized. According to the report, 790 mining rigs confiscated in the last raid consume as much electricity per day as 5,000 Chinese households. The police said that the suppression of electricity theft will continue.

The arrest of representatives of the Cloud Token platform also did not go unnoticed. According to reports, Cloud Token is a fraudulent MLM scheme with a high commission for attraction, which began to operate in January this year. It is alleged that more than 300 people suffered from the actions of fraudsters, the damage amounted to 30 mln yuan (more than $4 mln). Analysts compare the project with the Plus Token Ponzi scheme, which is believed to be the cause of recent crypto prices drop.



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