Chinese company secretly mined cryptocurrencies – lost over $23 million in value in less than a year
A listed Chinese construction company secretly engaged in crypto mining lost $23 million in value in less than a year.
The Chinese company Huatie Hengan was a subsidiary of the listed Chinese company Huatie. According to the company, it only has been engaged in rental services of cloud computing servers. However, according to documentation from the company, the operation seems to have almost exclusively consisted of mining of cryptocurrencies.
Recently, Huatie Hengan was sold at a price of around 12 million Chinese yuan (about $2 million). Less than a year ago, the company was worth 170 million yuan (about $25 million). That is a decline in the company’s value of over 90 percent, 8btc reports.
The reason why the company has performed badly in the past year is thought to be the so-called “crypo winter” when the crypto markets have gone down.
The sale of the company has also drawn attention in the crypto world, as this could be the first listed company in China that is revealed to be working with cryptocurrencies in secret, 8btc writes.
Cryptocurrency trading is officially illegal in China. Recently, the government also proposed to ban mining of cryptocurrencies, something Wired has written about.
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