Chinese Official Gets Life Sentence for Bitcoin Mining & Corruption
• Chinese official Xiao Yi was sentenced to life imprisonment for helping subsidize a secret, large-scale Bitcoin mining operation and committing unrelated acts of corruption.
• Xiao Yi admitted guilt, expressed remorse, returned the stolen funds, and saw the seizure of both the bribes and his gains.
• The illegal Bitcoin mining operation consumed 10% of Fuzhou’s electricity consumption between 2017-2020.
Chinese Official Sentenced to Life Imprisonment
A former Chinese government official, Xiao Yi, has been sentenced to life in prison for helping subsidize a secret, large-scale Bitcoin mining operation within the country’s borders alongside unrelated acts of corruption. The court ruling magistrate from Hangzhou People’s Court stated that Xiao had pled guilty to the charges and had already returned all of his bribes and profits as part of his admission of guilt.
Illegal Mining Operation in Fuzhou
Xiao Yi was specifically convicted of abusing his power by providing financial and electricity subsidies to Jiumu Group Genesis Technology, a company based in Fuzhou. This firm was responsible for operating over 160,000 Bitcoin mining machines at one point and accounted for 10% of the city’s electricity consumption between 2017 and 2020. Furthermore, prosecutors allege that Xiao attempted to hide this illicit mining operation by creating fake statistical reports as well as manipulating electricity consumption data.
Admission of Guilt
In an effort to reduce his sentence, Xiao Yi admitted guilt as well as expressed remorse for his actions while also returning all stolen funds. As part of this agreement with authorities, all bribes received by him were seized along with any profits he earned from this criminal activity.
Additional Corruption Allegations
In addition to aiding in an illegal Bitcoin mining operation in Fuzhou , prosecutors also allege that Xiao Yi engaged in bribery activities spanning from 2008 until 2020 involving several other government officials throughout China.
The court ruling magistrate confirmed that all allegations against Xiao Yi were true but ultimately decided on a life imprisonment sentence due to his cooperation with authorities during their investigation into these crimes committed by him .