Chinese Government Official Sentenced to Life in Prison for Corruption and Illegal Bitcoin Mining Operation
Summary:
Chinese government official Xiao Yi has been sentenced to life in prison for corruption and running an illegal $329 million Bitcoin mining operation. Yi was found guilty of bribery and abuse of power charges, related to activities from 2008 to 2021. The court ruled that Yi covered up the mining operation by manipulating reports and electricity consumption figures. China has banned cryptocurrency transactions but allows ownership.
A former member of the Jiangxi Provincial Political Consultative Conference Party Group and vice chairman, Xiao Yi, has been handed a life sentence by the Intermediate People’s Court of Hangzhou City in China. Xiao Yi was found guilty of engaging in illicit business activities connected to operating a $329 million Bitcoin mining enterprise, as well as facing charges of corruption. The corruption charges relate to bribery incidents spanning from 2008 to 2021, while the abuse of power charges stem from the period between 2017 and 2021. Specifically, Xiao Yi is accused of providing financial and electricity subsidies to Jiumu Group Genesis Technology, a company based in Fuzhou. This company once operated over 160,000 Bitcoin mining machines. The court found that Xiao Yi engaged in a cover-up by instructing relevant departments to falsify statistical reports and manipulate electricity consumption figures. Prosecutors also clarified that Xiao Yi has admitted guilt, returned the stolen funds, and had all bribes and their proceeds confiscated. It is worth noting that China has banned all cryptocurrency trading, exchange operations, and fiat-to-crypto transactions, although personal ownership is still allowed. In a separate legal case earlier this month, a Chinese court declared a $10 million Bitcoin lending contract invalid due to the country's crypto ban, with no possibility for debt recovery. Additionally, a Chinese citizen was recently sentenced to nine months in prison for assisting someone in purchasing Tether (USDT) and making a $20 profit from the transaction.
Published At
8/22/2023 3:10:16 PM
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