A former Chinese government official, Xiao Yi, has received a life sentence for his involvement in illicit business activities linked to a substantial Bitcoin mining venture valued at 2.4 billion Chinese yuan (approximately $329 million).
This ruling was accompanied by additional convictions related to corruption charges. The Intermediate People’s Court of Hangzhou City pronounced the sentence on August 22.
Xiao Yi, a previous member of the Jiangxi Provincial Political Consultative Conference Party Group and vice chairman, was found guilty of corruption and abuse of power.
The corruption allegations primarily revolved around non-crypto matters, specifically bribery that spanned from 2008 to 2021.
In addition, abuse of power charges were based on actions taken between 2017 and 2021, where financial and electricity subsidies were provided to Jiumu Group Genesis Technology, a company located in Fuzhou.
Notably, this firm managed over 160,000 Bitcoin mining machines at one point.
Prosecutors argued that Yi orchestrated a concealment of the mining operation.
He allegedly directed various departments to falsify statistical reports and manipulate electricity consumption records.
During the period from 2017 to 2020, Jiumu Group Genesis Technology was responsible for 10% of Fuzhou’s total electricity usage.
The court noted that Xiao Yi admitted guilt, demonstrated remorse, returned embezzled funds, and all confiscated bribes and their profits were recovered.
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China currently prohibits cryptocurrency transactions, exchange activities, and the conversion of fiat currency to crypto. However, complete ownership of cryptocurrencies has not been explicitly banned.
In a recent decision on August 3, a Chinese court invalidated a $10 million Bitcoin lending contract based on the country’s Bitcoin-related restrictions, precluding any legal recourse for debt recovery.
Additionally, on August 14, a Chinese citizen was sentenced to nine months in prison for aiding an associate in purchasing Tether, earning a $20 profit from the transaction.
In conclusion, Xiao Yi, a former Chinese government official, has been handed a life imprisonment sentence for his involvement in unauthorized business endeavors tied to a substantial Bitcoin mining venture and for corruption-related charges.
This verdict underscores China’s strict stance on cryptocurrency-related activities, while various legal actions continue to unfold in the country’s evolving regulatory landscape.
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