A court in China has sentenced a former party official and vice chairman of the Jiangxi Provincial Political Consultative Conference to life in prison for participating in illegal cryptocurrency mining activities, accepting bribes, and abusing power.
Xiao Accepted $17M in Bribe
According to the People’s Court of Hangzhou City, from 2008 to 2021, the defendant Xiao Yi took advantage of his position as the director of the Beijing Office of the Jiangxi Provincial People’s Government and vice chairman of the Jiangxi Provincial Political Consultative Conference. He illegally accepted over 125 million yuan (Approx. $17.1 million) in bribes to provide favors to some companies and individuals.
Furthermore, the court found that from 2017 to 2021, when the defendant served as the secretary of the Fuzhou Municipal Party Committee, he violated national regulation by participating in crypto-mining activities that led to “significant losses to public property, national and people’s interests,” constituting an “extremely serious case with extremely bad effects.”
Recall that China placed a blanket ban on cryptocurrency mining activities in 2021, citing concerns about the sector’s environmental impact. At the same time, the country banned cryptocurrency trading and other related activities.
Xiao Helped Crypto Mining Firms Despite Ban in China
A program aired earlier this year by state-run China Central Television (CCTV) revealed that Xiao Yi helped a local mining company conceal their activities by making them pose as a large data and cloud computing business.
According to CCTV, the defendant instructed one mining firm, dubbed Jiumu Group Genesis Technology, to “put up a performance” during visits and inspections by other government officials. CCTV also revealed that the former official asked relevant government departments to present fake information on the mining firm’s huge power usage, which accounted for 10% of Fuzhou’s total electricity consumption.
Meanwhile, aside from being sentenced to life, Xiao has also been deprived of his political rights for life. The People’s Court of Hangzhou City also noted that all his personal property would be confiscated.
