Chinese law enforcement officers in the Fuzhou district of Fujian province have arrested 31 employees of IPFS Union, a company involved in Filecoin (FIL) mining, according to Mo Li, marketing director at HashKey Hub, citing local media.
It got nothing to do with filecoin itself, one of its mining machine distributor got involved with pyramid scheme , so got ipfsunion in trouble
— Molly (@bigmagicdao) November 6, 2021
The miners allegedly had assets seized totaling 400 million yuan (about $62.5 million at the time of writing) in Ethereum, USDT, Filecoin and other cryptocurrencies.
According to Mo Li, the situation has nothing to do with IPFS Union or Filecoin.
“One of the distributors of mining devices was linked to a pyramid scheme, which led to trouble for IPFS Union,” he wrote.
In the wake of the arrests, the Filecoin price fell 8%, to $58. At the time of writing, the cryptocurrency was trading around $60.
In October, media reported that in China were examining the possibilities of prosecuting mining.
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