Thread by @bigmagicdao

there's a mad mad story about how the most notorious crypto mining mafia colluded with gov official in jiangxi, screwed Genisis Mining, led to central gov in china cracking down on crypto mining, and caused the big dump in May 19th.

Before I begin , just want to clarify I am not 100% sure it’s true, but the press and news and info mention in the story can be verified, and I post the original link at the end of this thread.

On May 10th, CPC Central Commission for Discipline Inspection annonced that a ministerial level gov official in Jiangxi provincial Xiao Yi is under investigation. words on the street the main reason of Xiao under investigation is becuase of Bitcoin.

In recent years, Xiao Yi has been develop the digital economy in Fuzhou vigorousl, and claims to promote the digital economy to become its core competitiveness, the digital economy he's pushing hard on is actually crypto mining. and during his tenure he accepted 8000btc as bribes

so how did a ministerial level gov official got into crypto mining, all thanks to this well known notorious mining mifia - lin qing xing.(the guy in suit is the gov guy, and all black is lin),there a lot mad story about this lin, you could dig out more if ask your og miner friend

no much of info about how those two were hooked up, since this case is still under investigation.but here's what happened to them. so first,Lin is chairman of 江西九木集团,and holds 95% of share of 抚州创世纪科技有限公司. He has bulit large mining farms in fuzhou(still in jiangxi

At its peak,the mining farms hosted over 100k bitcoin mining rigs,and more than 300k of Ethereum mining rigs. After lin got arrested,police have found multiple hardware wallets stored over 40b rmb(6busd) worth of btc and eth. so what went wrong cause them both get arrested?

It all started with a deal Fuzhou gov, and 抚州创世纪科技有限公司(company own by lin) made with GM foundation , which I assume is the Genesis Mining. The press said Xiao to led a team visited Germany made a 3 parties agreement to build a super computing industry center in Fuzhou.

Here’s more press release about this deal, in June 2017 GM Foundation in GM co-invested 4b rmb($621m)with lin,to build a super computing center in Fuzhou. they’ve built two data centers (mining farms),and put 24k servers(miners)running when they’re were talking about the new deal

The new deal there were making with, GM foundation and Lin invest $1.69B to build bigger super computing center , there’s 2 phases of this deal, 1st build 3 places to put down 45k serves(miners)in operation, then build a 300k square meter big center for 500k machines.(miners)

But little did GM foundation know,the German thought it’s happy deal for everyone, but few months after GM put over 100k eth miners and 60k btc miners in the centers in Fuzhou, they’ve got scammed, Lin change mining power to its own address. so GM started a long way of prosecute

It was hard battle for GM, since lin shameless mafia , and got a ministry-level official Xiao Yi’s back,so GM attempts of seeking justices failed massively. In about 3 years time, their miners have generating massive profit for Lin the whole time. And they can’t do nothing.

So what changed the game? All favors on GM side after they’ve got the hope from German embassy,because all evidences is soils, soon Lin and Xiao got arrested and gov started to investigate. Guys, valuable lesson hear, if you got fucked in oversea, seeking help from you embassy.

So CCP central commission of Discipline inspection start to investigating,found out there are massive crypto mining farms in Fuzhou, operating in a most dishonest and dirty, they were shocked so started to cracking down crypto mining, trading , OCT. known as the May 19th big dump

And finally, justice for Genesis Mining, Supreme Court required 抚州创世纪科技有限公司 (Lin’s company ) to returned 48.5k AMB GPU (RX470 8GB), and 60k antminers S9 to Genesis Mining.

This the original link of this mad story. I didn’t create this story, I just translated and shared. And I’ve doubled checked news mentioned is the story, seems pretty likely to be true, but it just my personal opinion.
zhuanlan.zhihu.com/p/410338978?ut…