Minnesota Man Faces Penalties for Ethereum Cryptojacking at Former Employer

Former Employee Exploits Company Systems for Ethereum Mining

A Minnesota resident has been sentenced to probation and fined after orchestrating a year-long cryptojacking scheme to mine Ethereum. This individual exploited his former employer's infrastructure, incurring $45,000 in server expenses while earning under $6,000 in return. Economic struggles were the driving force behind this low-profile crime, raising concerns about potential future incidents under similar economic conditions.

Understanding Ethereum Cryptojacking

Cryptojacking refers to the unauthorized use of computers to mine digital currencies. This practice has resurfaced in various forms over the years. Recently, a Minnesota man received a three-year probation sentence and a $45,000 fine for using his former company's resources to mine Ethereum.

Local reports indicate that Joshua Paul Armbrust, after resigning from Digital River—a payment processing and e-commerce company—used his AWS access to mine Ethereum from 6 PM to 7 AM daily. "The defendant's actions undermine digital trust and security," stated Assistant US Attorney Bradley Endicott, highlighting the risk of unauthorized access to corporate systems.

Although Armbrust's operation was relatively minor compared to other cryptojacking cases, resulting in only $5,895 worth of Ethereum, it still caused substantial financial damage to Digital River. Armbrust accepted responsibility, citing the need to care for his sick mother as motivation, which contributed to his lighter sentence. While he must repay the server costs and serve probation, incarceration was not imposed.

While rampant greed often drives crypto crimes, genuine desperation can also be a catalyst. Smaller operations like this cryptojacking scheme can go undetected for long periods due to their inconspicuous nature. Should the economic landscape in the US continue to decline, similar incidents may become more frequent.