Crypto Miner Gets Probation for Unauthorized Ethereum Mining

A former engineer at Digital River, Joshua Paul Armbrust, has been sentenced to three years of probation for illegally mining Ethereum using his former employer’s cloud servers. He pleaded guilty to computer fraud after accessing the company's Amazon Web Services account without authorization.

Armbrust's unauthorized mining activities occurred between December 2020 and May 2021. He reportedly generated over $5,800 worth of Ethereum, which he then converted for personal use. However, Digital River incurred approximately $45,270 in cloud service costs due to his actions.

His attorney argued that Armbrust was acting out of desperation during a period of financial and emotional distress. Prosecutors emphasized that his actions were a deliberate misuse of company resources, resulting in significant financial losses and operational disruption. At the time of the activity, Ethereum used a proof-of-work system.

Digital River has since faced financial difficulties, including filing for insolvency for its German subsidiaries and closing its Minnesota headquarters.

Key Takeaways:

• Unauthorized crypto mining can lead to legal consequences.
• Even relatively small gains can result in significant penalties.
• The cost of unauthorized mining can far outweigh the profits.
• Companies are increasingly vigilant about detecting and prosecuting such activities.