A Chinese official was sentenced to life imprisonment on August 22 for corruption and abuse of power. The man in question, Xiao Yi, is said to have helped a company fund and forge Bitcoin (BTC) mining documents. China banned all forms of bitcoin and crypto mining in May 2021.
Subsidies for bitcoin mining companies
According to local media source Xinhua News Agency, the government official was convicted of bribery and abuse of power. The officer also pleaded guilty to illegal business practices.
The trial revealed that the accused had abused various government offices from 2008 to 2021. In his last four years as secretary, Xiao Yi supported companies engaged in the production of digital currencies. He supported the Bitcoin mining companies with financial grants.
One of these companies would eventually manage more than 160,000 bitcoin mining machines with these government grants. The company was able to facilitate mining activities by falsifying reports and adjusting the classification of electricity consumption. The total consumption would account for 10% of Fuzhou’s power grid in three years. The company was valued at $329 million.
Bitcoin mining lifetime
The Chinese court finds that the crimes are particularly serious and that the defendant’s actions harmed the interests of the Chinese people. In addition to a life sentence, he was stripped of his political rights for life and his personal property was confiscated by the state.
The confiscated goods are recovered and returned to the Chinese Treasury. The proceeds from the bribes will also be handed over to the Chinese government.
China currently has a ban on almost everything related to cryptocurrencies. Only the possession of digital assets is still allowed. The Chinese government is cracking down on all crypto-related activities while promoting its own central bank digital currency (CBDC), a crypto coin issued by the central bank.