An official in China has been sentenced to life in prison on charges of Bitcoin mining and bribery


A recent case highlighting the intersection of digital currencies and governance, a former government official in China, Xiao Yi, has been sentenced to life in prison for his involvement in an illicit Bitcoin mining operation and a series of corruption charges. 

The Hangzhou City Intermediate People’s Court issued the verdict on 22 August, underscoring China’s strictness in maintaining the integrity of its financial and political systems.

Bitcoin mining and bribery venture that landed a former China official in prison for life

Xiao Yi’s downfall stems from his role in orchestrating a vast BTC mining enterprise that operated under the cover of Jiumu Group Genesis Technology, a Fuzhou-based company. 

The operation came to light during a crackdown on illegal cryptocurrency-related activities. 

Prosecutors revealed that, at its peak, Jiumu Group operated more than 160,000 Bitcoin mining machines, reaping huge profits from this energy-intensive process. 

Yi allegedly facilitated this operation by providing massive financial and electricity subsidies, which allowed the enterprise to thrive.

Xiao Yi’s charges go beyond Bitcoin mining. He was also found guilty of abuse of power and corrupt activities. 

The corruption charges range from 2008 to 2021 and involve allegations of corruption unrelated to the cryptocurrency sphere. During these years, Yi allegedly accepted bribes in exchange for favors, casting a shadow over his political career.

The abuse of power charges, which cover the period from 2017 to 2021, revolve around Yi’s manipulation of government resources to support the illicit Bitcoin mining operation. 

The indictment alleges that Yi used his authority to obtain financial and electricity subsidies, allowing the Jiumu Group to thrive in an area where such support should not have been extended. This abuse of power further illustrates the depth of his involvement in the operation.

The concealment of the operation

One of the most striking aspects of the case is the extent to which Xiao Yi would go to great lengths to conceal the Bitcoin mining operation. 

By instructing various government departments to falsify statistical reports and manipulate classifications of electricity consumption, Yi effectively obscured the scope and nature of the operation. 

Jiumu Group’s mining accounted for an incredible 10% of Fuzhou’s total electricity consumption from 2017 to 2020, underscoring the scale of the operation and the resources devoted to keeping its nature secret.

Xiao Yi’s case sheds light on China’s complex relationship with cryptocurrencies and the underlying technologies. The country has banned cryptocurrency transactions, exchanges, and fiat-to-crypto conversions. 

However, it has not banned the possession of digital assets. This nuanced stance reflects China’s desire to prevent speculative excesses while exploring the potential benefits of blockchain technology.

Recent legal decisions in China have further strengthened the country’s stance on cryptocurrencies. 

One notable case saw a $10 million Bitcoin loan contract declared invalid due to the prevailing ban on Bitcoin, which leaves no room for legal debt recovery. 

In addition, a Chinese citizen was sentenced to nine months in prison for facilitating a Tether transaction, a sign that authorities are actively enforcing cryptocurrency regulations.


Xiao Yi’s life sentence serves as a reminder of how far individuals can go to exploit the intersection of technology, finance and governance. 

His involvement in a massive Bitcoin mining venture, coupled with allegations of corruption and abuse of power, highlights the challenges governments face in maintaining transparency and accountability. 

China’s strict approach to cryptocurrencies further underscores the need for robust regulation that balances innovation with safeguards against potential illicit activity. 

As the digital landscape continues to evolve, cases like Xiao Yi’s will likely play a role in shaping global perspectives on the regulation of cryptocurrencies and associated transactions.