Former Jiangxi official Yi Xiao sentenced to life in prison for corruption and cryptocurrency mining

The court sentenced the former official of Jiangxi province Yi Xiao to life imprisonment for corruption and for supporting cryptocurrency mining operations.

According to the case materials, from 2008 to 2021 the accused used his official position for personal gain and earned more than 125 million yuan (~$17.1 million) in bribes.

From 2017 to 2021 Yi Xiao also held the post of party secretary of the city of Fuzhou. In that role he helped facilitate the work of mining companies, which the court said led to significant losses to state-owned assets, national interests, and the people’s interests.

In addition to the life sentence, Yi Xiao was permanently deprived of political rights, and all personal property was confiscated.

In late May 2021, Vice Premier Liu He stated that authorities planned to take measures against cryptocurrency mining and Bitcoin trading.

In early June, authorities in the provinces Xinjiang and Qinghai ordered local digital-asset mining companies to cease operations. Restrictions were also imposed in the region Yunnan.

In the Inner Mongolia Autonomous Region the crackdown on mining began even before the vice-premier’s statement.

In Sichuan, companies were ordered to cease operations by June 20 and local energy firms were barred from supplying them with electricity. By mid-July, 90% of mining capacity in China had been shut down. Main relocation destinations were the United States, Canada and Kazakhstan.

In September of that year, the People’s Bank of China, together with nine state ministries, categorized cryptocurrency operations as illegal financial activity.

In February 2022, the country tightened criminal liability for illegal fundraising in digital assets. At the same time, the Shanghai High Court recognised Bitcoin as a virtual asset with economic value protected by law.

In August 2023, a Chinese resident was sentenced to nine months for purchasing 13,000 USDT.

In the same month, China’s prosecutor accused the mining company Shenzhen Shikongyun, which mines Filecoin (FIL), of organising a pyramid scheme worth 606.9 million yuan (~$83.3 million).