Ethereum News

Secret cryptocurrency mining lands a Chinese principal in trouble

Lei Hua, the principal of a school in Hunan, China, has been fired after his secret cryptocurrency mining activities were unearthed.

The principal had plugged cryptocurrency mining rigs into the school’s electricity and used the school’s internet connection to mine Ether. After a while, the teachers at the school were disturbed by the continuous humming noise emanating from the school’s computer room.

Due to the principal’s secret cryptocurrency mining, the school was slapped with a $2,100 electricity power bill.

Initially, Lei had bought a single mining machine to mine ether at his home but after noting its excessive electrical power consumption, he decided to ship his mining rig to his school’s computer laboratory. To maximize the profits, Lei added 7 more rigs to make a total of 8 cryptocurrency mining rigs.

Hua even brought in his deputy on his activities prompting the deputy to add another rig of his own bringing the total number of mining rigs in the school’s computer laboratory to nine.

Allegedly, the school has been powering the rigs between last year’s and this year’s summer. The mining operations not only affected the school’s electricity bill but also its internet connectivity consequently hampering teaching.

Hua was fired in October with his deputy getting an official warning.

According to a cyber-security expert at Hacker House, Mathew Hickey:

“Sadly, stealing electricity is one way that people have tried to maximize their revenue – by avoiding those costs it can drastically improve returns on a mining operation,” adding that “the noise and heat of nine actively running machines would have been very noticeable.”

In the past, similar activities have been reported in Russia where scientists tried using supercomputers belonging to a nuclear facility to mine crypto.

Australia has also reported the same where employees tried to mine virtual currency using the meteorology department’s computers.

To avoid such scenarios, do you think renewable energy will widely be adopted to power cryptocurrency mining rigs?

Let us know your thoughts in the comments section below.

coinmag

Philip is an experienced blogger keen on staying updated with trends and news surrounding the blockchain and Bitcoin space. With several years of freelance experience in various industries, Philip brings his knowledge and experience into the crypto space.

Leave a Comment

Your email address will not be published. Required fields are marked *