The U.S. Department of Justice (DOJ) has pressed charges against two senior staff members of the Paterson Unified School District, accusing them of operating a cryptocurrency mining operation across 10 schools in the district. The charges allege that Jeffrey Menge, the Assistant Superintendent, and Eric Drabert, the district's IT director, used school resources to set up a cryptocurrency mining farm, increasing electricity bills in the process. The DOJ statement claimed that they purchased high-end graphics cards and utilized school property and power for the mining operation. However, specific details, such as the type of cryptocurrency mined, were not disclosed.
The cryptocurrency mining operation allegedly involved 10 schools serving around 6,200 students, but the exact number of schools utilized for mining was not specified. The charges include accusations of Menge stealing between $1 million and $1.5 million and Drabert stealing between $250,000 and $300,000. The DOJ's move comes amid a broader crackdown on cryptocurrency miners by U.S. energy regulators aiming to address concerns about energy waste in the country.
In a related development on February 1, the U.S. Department of Energy (DOE) announced that cryptocurrency miners would be required to report their energy consumption over the next six months. This action reflects concerns that the recent surge in Bitcoin prices has led to increased cryptocurrency mining activities, contributing to higher electricity consumption. The U.S. Energy Information Administration (EIA) also revealed plans to launch a survey to measure the electricity usage of local cryptocurrency mining companies.
The global regulatory landscape is also witnessing efforts to curb excessive electricity use by cryptocurrency miners. In December 2023, Indonesian police shut down 10 Bitcoin mining operations, accusing organizers of nearly $1 million in power theft. These developments highlight the growing attention and scrutiny faced by cryptocurrency miners worldwide, with authorities taking measures to address potential environmental and legal concerns associated with mining activities.
