It was discovered that a Chinese university student escaped regulations and owned a large-scale mining facility worth 6 million dollars in the United States, what is the method of operating a mining facility while avoiding Chinese regulations?
In China, where virtual currency
This NYU Student Owns a $6 Million Crypto Mine. His Secret Is Out. - The New York Times
https://www.nytimes.com/2023/12/25/technology/bitrush-bitcoin-cryptocurrency-china.html
When the Chinese government banned large-scale mining operations by companies in 2021, Chinese investors rushed to the United States, where mining is permitted, to build and operate large-scale mining facilities called 'cryptocurrency mines.' Hundreds of millions of dollars (tens of billions of yen) were spent.
Banks that receive funds from investors are allowed to know where those funds came from, and banks are required by law to report any suspicious activity by their customers to the U.S. Treasury Secretary. Additionally, when transferring funds from China to other countries, such transactions are subject to regulations by the Chinese government.
However, at the time of writing the article, it was revealed that Jerry Yu, a student at New York University, owns a virtual currency mine in Texas worth more than $6 million (approximately 850 million yen). I did. The revelation that Mr. Yu owns a cryptocurrency mine reveals how Chinese people can move funds from China to the United States without attracting the attention of regulators in either country. It has become.
The mine owned by Mr. Yu in the Panhandle of Texas is a facility consisting of dozens of buildings made up of 6,000 dedicated computers. It is said that virtual currency mining is carried out in the mines day and night.
Mr. Yu founded a company called 'BitRush' and was engaged in mining in a virtual currency mine. However, BitRush ran into trouble with a contractor over wages during the construction of a virtual currency mine. Texas-based Crypton Mining Solutions has filed a lawsuit against BitRush for nonpayment of wages and points out that the source of BitRush's funds is unclear.
In the trial surrounding BitRush, it was revealed that the traces of publicly available funds were stopped at the virtual currency exchange
David Hwang, a lawyer for Krypton Mining Solutions, provided The New York Times with a written plan for BitRush's acquisition of the cryptocurrency mine. In the plan, a company called ``Outlaw Mining,'' which is the seller of the mine, will receive $6.33 million (about 900 million yen) from BitRush in `` Tether ,'' a virtual currency that matches the exchange rate in the United States. It was stated that it was set. Additionally, the purchase contract specified a virtual currency wallet address for remittance of funds.
Josey Parks, founder of Outlaw Mining, said, ``Due to a confidentiality agreement with BitRush, we cannot comment on financial arrangements.''
By using virtual currency that ensures anonymity when purchasing mines, BitRush uses a virtual currency exchange that protects customer privacy and prevents the origin of funds from leaking to the outside. As a result, Mr. Yu's Chinese investors were able to avoid monitoring by the American banking system and regulators, while avoiding Chinese government regulations associated with funding from China.
The source of the funds for purchasing mines by BitRush is not documented, and only Binacne, an exchange that handles virtual currency transactions, knows about it. Binance spokesperson Jessica Jung said: “The Tether payments made by BitRush to purchase mines were made from three Binance accounts, all of which are owned by foreign nationals who do not reside in the United States.” I am reporting.
FalconX, a virtual currency intermediary, pointed out that ``there is no visibility into the source of funds,'' but emphasized that ``centralized regulatory oversight in the virtual currency industry is needed.''
The plan provided by Hwang identified names such as those who provided financing for BitRush's purchase of the mine and those with significant business interests, including Yu's lawyer Gavin Clarkson. He declined to comment on the identities or relationships of these individuals. Clarkson also reports that ``BitRush complies with all necessary federal, state, and local laws and regulations, including banking laws.''
Related Posts:
in Note, Posted by log1r_ut