Florida State Employee Arrested for Mining Cryptocurrency on Agency Infrastructure

4 months ago admin2 Comments Off on Florida State Employee Arrested for Mining Cryptocurrency on Agency Infrastructure

Get Trading Recommendations and Read Analysis on Hacked.com for just $39 per month.

According to a statement released by the Florida Department of Law Enforcement (FDLE), an employee at the Department of Citrus was found using state-owned computing hardware to mine cryptocurrencies. The perpetrator, Matthew McDemott, served as the information technology manager for the department, which overlooks the functioning of the citrus industry in Florida.

The FDLE arrested McDermott shortly after the discovery and had him transported to Polk County jail. The cryptocurrency mining operation was discovered after an evaluation of the department’s utility bill amounts. According to the department’s inspector general, the months between October 2017 and January 2018 saw a jump of $825 in electricity costs.

Mining refers to the act of verifying of transactions within a cryptocurrency’s network. The FDLE also attempted to explain McDermott’s motives, stating,

“A mining pool, or team, is used to solve mathematical equations in an effort to mine the virtual currency and win a reward. The pool combines its resources to help offset costs.”

Government owned computational resources have actually been the target of clandestine cryptocurrency mining operations for a very long time now. Given that computers in some state-owned facilities are quite powerful because of the workload they need to handle, individuals are often tempted to use them for self gain. Just a few days ago, for instance, the Louisiana Attorney General sacked several IT employees after they were found guilty of using government computers to mine bitcoin.

In February 2018, a BBC report also revealed that hackers had successfully injected a cryptocurrency mining script into the Information Commissioner’s Office website. The hijacked website would use the processing power of a visitor’s computer to mine cryptocurrencies without the knowledge of the user.

The United States is not alone in its battle against unauthorized use of its computers for cryptocurrency mining. According to another BBC report, several Russian nuclear scientists were arrested following the discovery of their plot to mine bitcoin at a top-secret nuclear warhead facility in Sarov, Russia.

In most cases, the penalty for using government resources for personal gain is not very severe at all. However, in this instance, Matthew McDermott also used a state purchasing card to obtain additional mining hardware worth $22,000. The money was reportedly used between July and December 2017 to purchase 24 graphic processing units according to the Florida law enforcement agency. Because of the extended nature of his crime, McDermott has been charged with grand theft on top of official misconduct and had his bail set at $5,000.

Featured image from Shutterstock.

Follow us on Telegram.



Related Posts

(+) Altcoins – Know When to Hold Em

admin2 8 months ago
Litecoin values have been remarkably stable this week, even as volatility churns the broader cryptocurrency market. Now, investors are celebrating advances that could make Litecoin transactions become more private.... Read More

‘WordPress of Blockchain’ Startup Seeks to Solve Enterprise Pain Points

admin2 3 months ago
Building enterprise blockchains can be a pain in the neck. Since the technology is so new, much of its underlying infrastructure isn’t yet stable or automated, and as such,... Read More

All In? Riot Blockchain Says It May Launch US Cryptocurrency Exchange

admin2 4 months ago
Advertisement Join our community of 10 000 traders on Hacked.com for just $39 per month. Former biotech company Riot Blockchain has announced that it may launch a cryptocurrency exchange... Read More

Finnoq Gains Huge Support from One of the Top Crypto Fund “Blockchain i”

admin2 1 week ago
Advertisement This is a paid-for submitted press release. CCN does not endorse, nor is responsible for any material included below and isn’t responsible for any damages or losses connected with... Read More