Chinese School Principals Caught Mining Ethereum At Work

Two principals at a Chinese school got in hot water after installing ethereum miners at the institution, according to a report.

AccessTimeIconNov 8, 2018 at 1:00 p.m. UTC
Updated Sep 13, 2021 at 8:34 a.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

Two principals at a Chinese school got in hot water after stealing power from the institution to mine the ethereum cryptocurrency.

According to a report from Hong Kong news outlet HK01 on Wednesday, Puman Middle School in Hunan province had been experiencing higher than normal noise levels from its computers over recent months, even on the holidays. The school's IT network had also significantly slowed, while electricity consumption had almost doubled from July to November.

The school's general manager had initially put the energy usage spike down to overuse of air conditioners, but an investigation revealed that that the school's principal, Lei Hua, and vice principal, Wang Zhipeng, had installed nine computers worth around $7,000 in total to mine the ethereum cryptocurrency, the report states.

HK01 indicates that the principal had initially set up the mining machines at his home, but was dismayed at the electricity costs incurred as a result. So, he installed the machines in a school dormitory and effectively stole the required power.

The school reportedly lost electricity to the value of $2,163, for which the principal has been punished and removed from his post at the school, as well as within the Communist Party. The vice principal was given a warning.

While no institution is likely to allow employees to use their facilities or power to mine cryptos, that hasn't stopped some from trying.

Back in March, a state employee at Florida's Department of Citrus was arrested for allegedly using official computers to mine cryptocurrencies. At the same time, Louisiana's attorney general was investigating a group of former staffers for the same offence.

And last year, a former employee of the Federal Reserve Board of Directors was fined $5,000 and put on probation after being caught mining bitcoin on a server owned by the U.S. central bank.

Mining farm image via Shutterstock

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk offers all employees above a certain salary threshold, including journalists, stock options in the Bullish group as part of their compensation.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.