Posted on

Crimean Government Employees Fined for Mining Bitcoins at Work

Two former employees of Crimea’s Council of Ministers have been fined 30,000 rubles ($525) each for mining bitcoins on the Council’s computer network, Russian media outlets reported Monday.

As previously reported by CoinDesk, the unidentified workers were fired in late September 2017. Mining is an energy-intensive process through which new transactions are added to the blockchain, simultaneously rewarding miners with new coins for their efforts.

The mining allegedly took place from September 2016 through January 2017, and resulted in 15,000 rubles in profit – about $260 – according to the Russian Legal Information Agency (RAPSI).

The Agency also indicated that the employees’ mining activities consumed more than 57,000 rubles’ ($1,000) worth of electricity. The workers were subsequently charged with abuse of power, and they have reportedly paid their fines in full.

The incident in Crimea is one of many cases across the globe in which employees have been found to be mining cryptocurrency at work – and subsequently penalized.

In February, for example, nuclear scientists at a Russian weapons research facility were charged for using computers to mine cryptocurrencies.

Three such incidents have been reported in March alone. Staffers at Louisiana’s attorney general’s office are under investigation for appropriating official resources for crypto mining. Likewise, a state employee at Florida’s Department of Citrus was arrested for using Department computers to mine bitcoin and litecoin.

Officials at Australia’s official weather reporting agency, the Bureau of Meteorology, were also reportedly placed under investigation for mining at the beginning of the month.

Bitcoin mining image via Shutterstock 

The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

Posted on

Government Staffers Fired for Bitcoin Mining in Crimea

Two IT workers employed by the government of Crimea were fired late last month after they were reportedly caught mining bitcoins at work.

RIA Novosti reports that the two unnamed individuals were employees of the Council of Ministers of Crimea, part of the territory’s executive branch. The news service indicates the workers installed mining software on computers owned by the council, though the report didn’t state how long the operation had been in place.

Through mining – the energy-intensive process by which new transactions are added to a blockchain – the two were said to have raised only a small amount of bitcoin before being discovered.

Whether the government is pursuing charges against the individuals remains uncertain at this time.

The incident is the latest instance in which an employee used official resources to mine bitcoin – only to get caught and terminated for doing so.

In January, an IT employee for the Federal Reserve board of directors was fined $5,000 and put on probation after using a server to mine bitcoins. Later in July, a New York City employee was disciplined after being caught using a government computer to mine bitcoins.

Bitcoin mining image via Shutterstock

The leader in blockchain news, CoinDesk is an independent media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. Have breaking news or a story tip to send to our journalists? Contact us at [email protected].

Posted on

Ministry Staffers Fired for Bitcoin Mining in Crimea

Two IT workers employed by a ministry in Crimea were fired late last month after they were reportedly caught mining bitcoins at work.

RIA Novosti reports that the two unnamed individuals were employees of the Council of Ministers of Crimea, part of the disputed territory’s executive branch. The news service indicates the workers installed mining software on computers owned by the council, though the report didn’t state how long the operation had been in place.

Through mining – the energy-intensive process by which new transactions are added to a blockchain – the two were said to have raised only a small amount of bitcoin before being discovered.

Whether the government is pursuing charges against the individuals remains uncertain at this time.

The incident is the latest instance in which an employee used official resources to mine bitcoin – only to get caught and terminated for doing so.

In January, an IT employee for the Federal Reserve board of directors was fined $5,000 and put on probation after using a server to mine bitcoins. Later in July, a New York City employee was disciplined after being caught using a government computer to mine bitcoins.

Bitcoin mining image via Shutterstock

The leader in blockchain news, CoinDesk is an independent media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. Have breaking news or a story tip to send to our journalists? Contact us at [email protected].

Posted on

Council Staffers Fired for Bitcoin Mining in Crimea

Two IT workers employed by an authority in Crimea were fired late last month after they were reportedly caught mining bitcoins at work.

RIA Novosti reports that the two unnamed individuals were employees of the Council of Ministers of Crimea, part of the disputed territory’s executive branch. The news service indicates the workers installed mining software on computers owned by the council, though the report didn’t state how long the operation had been in place.

Through mining – the energy-intensive process by which new transactions are added to a blockchain – the two were said to have raised only a small amount of bitcoin before being discovered.

Whether the council is pursuing charges against the individuals remains uncertain at this time.

The incident is the latest instance in which an employee used official resources to mine bitcoin – only to get caught and terminated for doing so.

In January, an IT employee for the Federal Reserve board of directors was fined $5,000 and put on probation after using a server to mine bitcoins. Later in July, a New York City employee was disciplined after being caught using a government computer to mine bitcoins.

Bitcoin mining image via Shutterstock

The leader in blockchain news, CoinDesk is an independent media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. Have breaking news or a story tip to send to our journalists? Contact us at [email protected].