Chinese Authorities Uncover $2 Million Counterfeit Crypto Graphics Card Scheme

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Crypto.news reports that seven Chinese nationals have been apprehended for allegedly selling refurbished graphics cards as new to crypto miners. The $2 million counterfeit operation saw the suspects purchasing GPUs in bulk from miners, cleaning them, and removing any identifying marks before repackaging them to appear as brand-new models.

The group capitalized on the current global chip shortage, which has made it difficult to purchase new graphics cards, leading to customers unknowingly paying more than usual for allegedly new cards.

Mining cryptocurrencies like Bitcoin, Litecoin, Ethereum Classic, and Monero can be lucrative, however miners must upgrade their gear to stay competitive when connected to proof-of-work networks. The reward for successfully verifying a block of transactions is the network’s native currency, which can then be sold for cash.

The high demand for GPUs has led to scarcity, resulting in some individuals refurbishing gear and selling them as new.

Litecoin is set to halve its miner rewards in August, followed by Bitcoin and Bitcoin Cash next year. This will likely support prices and may impact mining operations, as users will have to upgrade their gear to remain competitive should prices rise.

This article was originally published on Crypto.news.

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