China has handed down a verdict against a former party official for committing corruption and facilitating activities related to cryptocurrency mining. The convicted individual, Yi Xiao, a former provincial-level official in Jiangxi Province, has been found guilty of abusing his authority to enable cryptocurrency mining operations.
The trial took place in the city of Hangzhou, situated in Zhejiang Province in Eastern China. The court’s findings revealed that between 2008 and 2021, Xiao took advantage of his position, which included serving as the Deputy Chairman of the Political Consultative Conference of Jiangxi Province. He was charged with illegally accepting bribes totaling over 125 million Chinese yuan (approximately $17.1 million US dollars), the court disclosed.
Furthermore, during his tenure as the Secretary of the Party Committee of Phu Chau City from 2017 to 2021, Xiao actively supported companies involved in cryptocurrency mining. This support resulted in “significant damage to public assets, national interests, and the people,” as emphasized by the court.
As a consequence of these actions, Xiao has been sentenced to life imprisonment, stripped of political rights for life, and had his personal assets confiscated.
This case stands in stark contrast to Hong Kong’s proactive development of the cryptocurrency and Web3 industries. While Hong Kong is embracing these technological advancements, China took a different route by banning all cryptocurrency transactions within its territory since September 2021. Moreover, starting from May 2021, China initiated a widespread crackdown on cryptocurrency mining activities in several provinces.
Just last week, a local court in the Guangxi Zhuang Autonomous Region revealed that it had conducted a trial involving Shenzhen Shikongyun Technology, one of China’s largest Filecoin mining companies. The company faced allegations of operating a multi-level fraudulent scheme valued at $83.3 million US dollars.
Source: https://azcoinnews.com/former-chinese-party-official-sentenced-for-corruption-and-facilitating-cryptocurrency-mining-activities.html
