Source: 1Point3Acres Warald
According to the New York Times, 23-year-old New York University student Jerry Yu (余承东) is the owner of a Bitcoin mining farm in Texas, which was acquired for over 6 million US dollars last year.
The Bitcoin mining farm, BitRush Inc. (also known as BytesRush), was not purchased with US dollars. Instead, it was purchased with cryptocurrency.
It is reported that Jerry Yu transferred funds to the United States using the Bitcoin mining farm without the knowledge of the government.
Due to the anonymity provided by cryptocurrency, transactions were conducted through offshore exchanges to prevent anyone from knowing the source of the funds.
This allowed Chinese investors to bypass the supervision of the US banking system and federal regulatory agencies, as well as circumvent China's restrictions on capital outflows.
The mining farm is located on a vast site in Texas and consists of dozens of buildings with 6,000 dedicated computers.
After China banned all cryptocurrency trading and mining in September 2021, more and more Bitcoin mining companies have turned to rural areas in the United States, particularly in Nebraska, Wyoming, and Texas.
Recent reports from the New York Times indicate that these cryptocurrency mining farms are causing some concerning socio-economic impacts.
Jerry Yu's Bitcoin mining farm, BytesRush, located in Channing, Texas, is facing lawsuits for allegedly not fully paying workers' wages.
Another cryptocurrency mining company, Crypton Mining Solutions, also located in Texas, is suing BytesRush, claiming that the company failed to pay for the services provided.
In response to interviews, Jerry Yu's attorney, Gavin Clarkson, pointed out that the company complies with all federal, state, and local regulations, including banking regulations, and that the contractors' claims of not receiving payment are "baseless."
Clarkson stated that it is actually Crypton that owes money, and BytesRush accuses them of "gross negligence" and is seeking $750,000 in damages.
It was not until recently that this little-known cryptocurrency mining farm, along with Jerry Yu's identity and the means of transferring a large amount of wealth across borders, was unexpectedly exposed.
Jerry Yu is of Chinese nationality but has US residency. From a lifestyle perspective, he is a genuine second-generation wealthy individual.
He received education at a preparatory school in Connecticut and then entered New York University. His apartment in Manhattan is worth 8 million US dollars, and the former owner of the apartment is Jeffrey Immelt, the former CEO of General Electric.
Last year, he acquired the majority of the shares of the cryptocurrency mining farm in Channing, Texas, for 6 million US dollars.
According to records from the business intelligence company WireScreen, the two individuals who signed the mortgage documents for Jerry Yu's Manhattan apartment are Yu Hao and Sun Xiaoying, matching the names of a Chinese couple whose company shares are worth over 100 million US dollars.
A person named Sun Xiaoying is also listed as a director of BytesRush. Jerry Yu's attorney is unwilling to confirm the identities of BytesRush's shareholders or confirm any possible relationship between Jerry Yu and any of the shareholders.
According to the New York Times, these types of mining farms may burden the US power grid, and the Chinese citizenship of everyone involved has also attracted scrutiny in terms of national security.
These mines are a way to produce cryptocurrency (mainly Bitcoin), and these computers can run day and night, attempting to guess the correct number sequence to obtain new Bitcoins, which are currently valued at over 40,000 US dollars each.
The public funding trail ends at the cryptocurrency exchange Binance.
Jerry Yu completely concealed the source of his funds by using a cryptocurrency called Tether and transferring it through Binance's offshore exchange.
According to the US government, Binance's offshore operations did not comply with US banking regulations at the time of the transactions.
Last month, it was also reported that Binance admitted to violating anti-money laundering regulations and accepted fines and forfeitures of over 4.3 billion US dollars.
The core of this federal case is that Binance failed to comply with laws such as the Bank Secrecy Act, which requires lenders to verify the identity of customers and flag suspicious fund transfers.
Many netizens are puzzled: Can a 23-year-old college student have such great ability?
Some netizens also believe: Here comes the US Internal Revenue Service again!
What do you think about this? Feel free to leave a comment and share your views!
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