15 People Arrested In China For Illegal Mining In Cybercafes

Olowo by Olowo - 01:32 PM Sep 06, 2019

Police have arrested 15 people suspected of stealing electricity from a local coffee to mine cryptocurrencies in, Hanyang, a city in Hunan province in China.

Since 2017, the local police had been looking for those who believed they would be a gang of electricity thieves, who were dedicated to implanting mining viruses on cybercafe computers.

$20million Worth Of Coins Mined Illegally From These Cafes

It is estimated that the digital coins they stole were sold for more than one hundred million yuan ($20 million ). In addition, it is believed that approximately 9,000 computer administrators at these premises were bribed by criminals to implant the mining virus.

After several investigations, the police received a clue that showed that many local cybercafes were illegally controlled remotely for crypto mining. Many of the computers in these establishments worked so slowly that some even burned the hardware.

After confirming the clues, the authorities analyzed the data and extracted the illegal procedures implanted in the computers.

Illegal Mining Scheme Traced To Network Operator Named Zhang

The preliminary investigation found that the developer of the program that was infecting the equipment was a network technology company in Zhengzhou, whose boss was called Zhang.

Apparently this platform should only provide advertising and value-added businesses, but in reality it was dedicated to the crypto mining business.

Zhang bribed the administrators of cybercafes under the pretext of contacting companies, asking them to implement the "mining" program on their premises' computers while maintaining their systems, all with the aim of being able to control it from remotely

Over the past two years, Zhang has paid over 9,000 cybercafe administrators across the country to act as offline agents.  As if that were not enough, the results of his strategy have given him an average monthly commission of 20 million yuan, which is approximately $2,803,200 million.

China Have Been Plagued With Illegal  Crypto Mining In The Past Few Years

Now the 15 suspects of collaborating with Zhang were arrested, but police continue their investigations. Stealing electricity to mine digital currencies has become a popular activity in China.

Other cases such as the installation of illegal farms or the arrest of older persons for undermining in these circumstances have already been carried out and it is believed that, if similar situations are repeated, they will obtain similar results.


About The Author

OlowoI am olowoporoku adeniyi, writer, editor and crypto evangelist, with five years experience in the Blockchain industry.


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