BIT Mining Limited, a China-based corporation supported by state-run enterprises with a history of cyber-attacks and a close link to the Chinese Communist Party (CCP), invested over $25 million in a bitcoin mining operation in Texas according to National Pulse.
The Texas Mining Center is a cooperation project between Chinese firm BIT Mining and a Texas-based subsidiary of Bitdeer on “Bitcoin mining”—the process by which new bitcoins are introduced into circulation.
Bitdeer itself is also a Chinese-owned company founded by Jihan Wu, a leader in the cryptocurrency industry. He is the co-founder of Bitmain—the world’s largest computer chip company for bitcoin mining, PR Newswire reported.
BIT Mining, formerly known as 500.com, has extensive financial and personnel ties to the CCP.
According to the firm’s Securities and Exchange Commission (SEC) filing, one of 500.com’s directors attended the Central Party School of the Communist Party of China.
As Reuters points out, Tsinghua Unigroup, a Chinese state-backed chipmaker, was a prominent shareholder of BIT Mining, having amassed over one-third of the corporation by 2018 and counting its co-president as the business’s chairman. Tsinghua Unigroup is a subsidiary of Tsinghua Holdings, a state-owned corporation based in Beijing and backed by Tsinghua University. According to Nicholas Eftimiades, former Senior Intelligence Officer in the Defense Intelligence Agency and State Department Official, Tsinghua University—Xi Jinping’s alma mater—has a “clear connection between them and the state administration for technology and industry in discussions on what [they] can do to help the national security.”
This school once launched cyberattacks against the U.S. government Eftimiades said at a press conference at the State Department in 2019:
Independent research has also confirmed that the institute “was the origin of multiple recent cyber-espionage campaigns targeting groups such as the Tibetan community in India and the Alaskan state government,” as reported by Financial Times.
500.com was also accused of bribing Japanese legislators to build a casino in the country, Nikkei Asia reported.