Sentenced to life imprisonment for accepting bribes of 125 million yuan! The arrested official in Jiangxi was one of the reasons for the 519 plunge in the cryptocurrency market! (From Coinsradar.net)
In order to mine, Xiao Yi, the former secretary of the Fuzhou Municipal Party Committee of Jiangxi Province, runs about 160,000 mining machines every day to help virtual currency mining companies build buildings, raise funds and provide various assistance.
160,000 mining machines account for 10% of the city's electricity consumption!
According to people familiar with the matter, Xiao Yi is suspected of accepting more than 8,000 bitcoins as bribes during his term of office. Calculated by market value, this figure exceeds 2 billion yuan.
If there are several milestone anniversaries in the history of the cryptocurrency industry, then 519 is an unavoidable key date. This is also the largest single-day market decline in 2021 after 94 and 312.
Bitcoin and Ethereum fell by more than one-third on the day, and other currencies were countless. For a time, the cryptocurrency community was howling.
Subsequently, the cryptocurrency industry encountered a series of negative news, and the price of the currency continued to fall. In May, many old investors were defeated, and members of the cryptocurrency trading group gradually withdrew. After that, the violent bull market in September and October came... but many people fell before dawn.
During this period, mining farms were shut down, mining machines were shipped overseas, and financial media were removed from the shelves. The cryptocurrency circle was in a state of panic, and the old investors felt that the bull market was over.
This is the impact of 519 on the cryptocurrency circle. To this day, the old investors can't forget the fear of being dominated by 519.
The direct cause of the big crash was that my country issued the "Notice on Preventing Bitcoin Risks", prohibiting institutions from providing cryptocurrency-related services, which immediately caused a panic atmosphere in the market.
Whether it is the old investors in the cryptocurrency circle or the new investors who joined in recent months, they have panicked and sold, further pushing prices down.
my country officially banned the continued cryptocurrency mining business in the country in 2021, but since 2018, they have been controlling certain selected companies to illegally make a lot of money through virtual currency.
The May 19 cryptocurrency waterfall incident at that time was attributed to former official Xiao Yi. If it weren't for this incident, the higher authorities would not have pursued it, nor would they have thoroughly investigated mining companies across the country.
Due to the charges of bribery and abuse of power, the defendant Xiao Yi was sentenced to six years' imprisonment, life imprisonment, deprivation of political rights for life, and confiscation of all personal property;The seized and confiscated property and interest from Xiao Yi's bribery will be recovered according to law and turned over to the state treasury.
In a tearful confession to the TV audience, Xiao accepted disciplinary sanctions and expressed remorse, admitting that his actions had caused "serious losses."
After the Central Commission for Discipline Inspection and the National Supervisory Commission opened an investigation, Xiao Yi was suspected of ignoring industrial policies and assisting companies in cryptocurrency mining activities.
A company supported by Xiao Yi disguised itself as a big data computing center, but was actually used to mine cryptocurrency on an unprecedented scale, with about 160,000 machines, accounting for one-tenth of Fuzhou's energy needs.
In addition to covering up illegal energy consumption, Xiao Yi's other illegal acts included soliciting bribes and preferential regulatory treatment. The TV program also reminded viewers of the volatility of cryptocurrencies and other risks associated with China's emerging industry.
In 2021, the country stepped up its crackdown on cryptocurrency mining after previously banning cryptocurrency trading, and mining companies such as Bitmain went overseas.
Since then, my country has maintained a high-pressure policy to prevent people from speculating in cryptocurrencies and suffering huge property losses.
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