December 26, 2023

Report Reveals Chinese Investors Acquire Crypto Mining in Texas

Crypto Mining

Crypto Mining

The New York Times has recently published a report revealing how Chinese investors, with the help of Binance, acquired a crypto mining facility in Texas.

The report suggested that a 23-year-old Chinese national and NYU student named Jerry Yu is the main owner of BitRush. This Texas-based crypto mining facility received $6 million in Tether (USDT) from undisclosed Chinese investors.

The investors, who are described as “not only Chinese citizens but citizens in highly political and influential business positions,” are being accused by Crypton Mining Solutions of not paying for their services in the Texas Panhandle town. The investors raised concerns about how the funds were transferred from China to the U.S.

The New York Times reported that Binance, through its offshore branch, facilitated transactions with USDT using public money when the exchange’s operations were not following American banking rules.

The source of the funds remains unclear, as only Binance is aware of it. Gavin Clarkson, a lawyer representing BitRush, told the New York Times that the company did not send or receive funds via Binance. Clarkson also denied allegations of non-payment and affirmed that BitRush had adhered to all applicable laws and regulations.

According to a spokesperson for Binance, the transactions in question were carried out by foreign nationals who were not U.S. residents. The spokesperson did not disclose the names of the individuals involved. Legal documents obtained by Crypton indicate that BitRush, a company, had planned to purchase a Texas site for $6.33 million in USDT. The documents also reveal that the biggest shareholder of BitRush was an undisclosed investor from IMO Ventures, a venture capital firm focused on China, after Yu.

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