Official Crypto Miner: Patterson School Officials At The Center Of The Illegal Mining Scandal

Two High-Ranking School District Officials In The United States Were Accused Of Illegal Mining Of Cryptocurrencies

Recently, cases of illegal mining of cryptocurrencies have become increasingly resonant. In the United States, namely the Patterson Unified School District, the Department of Justice has filed charges against two senior employees of the organization. The basis for legal prosecution was the use of school grounds for hidden mining of cryptocurrencies.

The defendants, Jeffrey Menge, who holds the position of assistant superintendent of the school district, and IT director Eric Drabert, organized the purchase and placement of high-performance equipment for mining digital currencies. In the course of their activities, they used the resources of school institutions, including computer equipment, and abused electricity, which led to a sharp increase in the cost of energy consumption of educational institutions.

The prosecutor's office revealed that the profits from cryptocurrency activities were transferred to the personal cryptocurrency wallets of the accused. In addition to accusations of illegal mining, employees are also suspected of fraud and embezzlement of funds, as a result of which Menge embezzled up to $ 1.5 million, and Drabert – from a quarter to 300 thousand dollars.

Although the specific names of the mined cryptocurrencies have not been disclosed, it is known that in the United States Bitcoin (BTC), Monero (XMR), Ravencoin (RVN), and Dogecoin (DOGE) were most often used for such operations.

What happened happens against the background of increased control by American regulators over the activities of cryptocurrency miners. Since the beginning of February this year, miners have been required to report on electricity consumption for the last six months. According to data provided by the Energy Information Agency (EIA), the share of miners in total energy consumption in the United States ranges from 0.6% to 2.3%.

In the future, it is assumed that the EIA will conduct a study to assess energy consumption by mining companies, which will require providing detailed information about energy consumption. This will simplify the task of the department to control operations related to high energy intensity.