Recents in Beach

Chinese School Officials Caught Mining Ethereum On School Property

Local Chinese news outlet HK01 reports that teachers at Puman Middle
School in Chenzhou, Hunan Province have been caught mining Ethereum
on school property. The operation went on for the last several months
and did not go entirely unnoticed – people had complained that the
computers in the school were making an awful lot of noise.
Source: HK01.com
The mining operation apparently even bogged down the school network,
making it hard for teachers to do their jobs. Eventually the teachers
sought answers and uncovered the mining rigs pictured above.
By way of explanation, the Principal and Vice Principal, who were
accomplices in the enterprise, had moved the operation to the school
because their electricity bills were getting too high. Principal Lei Hua
lost his job in the debacle while Vice Principal Wang Zhipeng was let
off with a warning.
Hua went into detail about how the machines came to be placed at the
school. Initially he’d spent over 10,000 yuan on his first rig and
quickly realized it was using too much energy, so he moved it to the
school dormitory. He later spent another 40,000 yuan buying seven more
rigs and found that these would not fit in the dorm, so he moved them
into the school proper. In total, the mining operation incurred more
than 14,000 yuan (around $2,000) in extra electricity bills for the
school.
Not The First or Last to Steal
Energy for Crypto Mining
Zhipeng and Hua are far from the only public servants in the world to
ever have used public resources for private pursuit of cryptocurrency.
An employee of the Federal Reserve was once caught mining Bitcoin for
years, between 2012 and 2014, on government servers. He paid a fine
of $5,000 and caught 12 months probation.
An administrator with the New York Department of Education g ot away
with it for far less time , mining only at night in 2014. Being a union
employee, his fine was more interesting: four vacation days worth
about $600.
Florida’s Department of Citrus had a similar incident with its IT
manager, who was caught when the agency called for an investigation
into its unusually high utility bills.
At least six people were fired in Louisiana over a similar breach of
trust .
In Australia, two employees of the official meteorological service were
involved in a Bitcoin mining operation involving the service’s
powerful computers .
Civilians steal power too. A man in China was arrested for tampering
with his power meter and effectively stealing energy to power at least
200 mining rigs.

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