A high-ranking Communist Party official who was ousted from the party in May for allegedly supporting crypto miners has been arrested. Meanwhile, people are being discovered using bitcoin to send money abroad illegally.
Xiao Yi is a former vice chairman of the Jiangxi Provincial Committee of the Chinese Communist Party (CCP) who, according to Epoch Times and Xinhua news agency, is behind bars.
After the Chinese Communist Party discovered evidence that Mr. Xiao had taken bribes and abused his power, the Supreme People's Procuratorate, China's equivalent of the US Prosecutor General's Office, was assigned to handle his case.
The CCP claimed that Xiao Yi had been assisting crypto mining in return for bribes and unlawful actions, and had attended orgy parties thrown by individuals, mining pools, or firms – most likely in exchange for allowing them to continue their operations.
Many apparent Big Data -related businesses have long engaged in crypto mining-related work under the guise of Industry 4.0 research, often with the assistance of compliant (and corrupt) officials. Beijing has been attempting to stamp this out since September's crackdown.
The Chinese government is thought to be seeking to make an example of Xiao Yi, who was detained last month, according on state media. His case is continuing to be handled, Xinhua reported. However, severe penalties including hard labor or life imprisonment are not out of the question.
The case was opened by the CCP in May, and seven other officials were dismissed as part of a campaign against corruption - nevertheless, Xiao Yi is the first to be charged with crypto-mining-related offences, and he is unquestionably the most important among them.
Meanwhile, Chinese media have also been covering people being arrested for sending money abroad using cryptocurrency.
The Perthe People's Daily, the government, and organizations like the central People's Bank of China are stepping up their monitoring of foreign exchange market trading, vowing to severely punish any illegal fund transfers used in cross-border gambling and "speculation," including cryptocurrency.
The government's national foreign exchange agency has also discovered "cases of unlawful cross-border money transfers using virtual currencies," as well as individuals attempting to conceal their identities by purchasing and selling coins on "fourth-party" over-the-counter payment systems.