Wednesday, May 22, 2024

DOJ charges duo for crypto mining in school district amid US energy scrutiny


The US Division of Justice (DOJ) has charged two senior employees members of the Patterson Joint Unified College District for allegedly working a crypto mining operation on the premises of the district’s 10 faculties, using faculty sources and operating up the electrical energy prices.

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In a latest statement, the DOJ claimed that assistant superintendent and chief enterprise officer of Patterson Joint Unified College District, Jeffrey Menge, together with IT director for the varsity district, Eric Drabert, labored collectively to function a crypto mining farm, pocketing the income.

“They bought high-end graphics playing cards and used these playing cards, along with different faculty district property and electrical energy, to function a cryptocurrency mining” farm on the faculty district.”

Nevertheless, the assertion didn’t present readability on what number of faculties within the district have been used for the crypto mining operation, which includes 10 faculties serving about 6,200 college students. Moreover, the kind of crypto mined was not disclosed.

A number of the mostly mined cryptocurrencies embody Bitcoin (BTC), Monero (XMR), Ravencoin (RVN) and Dogecoin (DOGE).

According to latest knowledge from CoinGecko, mining a single Bitcoin as a solo miner requires about 266,000 kilowatt hours of electrical energy. This is able to take roughly seven years, requiring a month-to-month electrical energy consumption of 143 kWh.

Bitcoin mining vs. family home equipment (electrical energy consumption). Supply: CoinGecko

Together with different alleged fraudulent exercise, the DOJ claimed that Menge stole between $1 million and $1.5 million, whereas Drabert stole between $250,000 and $300,000.

This comes amid the U.S. power regulator’s latest crackdown on crypto miners as a part of an initiative to lower power waste within the nation.

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On Feb. 1, america Division of Power (DOE) declared that crypto miners should report their power consumption for the upcoming six months. This transfer follows considerations in regards to the latest surge in Bitcoin costs, resulting in an inflow of crypto mining actions.

Associated: Bitcoin mining firm Core Scientific mined $812M worth of BTC in 2023

Only a day earlier than this, the U.S. Power Info Administration (EIA) stated will probably be releasing a survey to measure the electrical energy utilization of native crypto mining corporations beginning subsequent week, with miners “required to reply with particulars associated to their power use.”

This isn’t only a concern inside america. Regulators worldwide are making efforts to regulate extreme electrical energy consumption.

In December 2023, Cointelegraph reported that Indonesian police authorities closed down 10 Bitcoin mining operations, accusing the organizers of electrical energy theft amounting to just about $1 million.

Journal: Mystery of Polygon’s missing MATIC: Everyone’s doing it, says ChainArgos