The United States Department of Justice (DOJ) has brought charges against two high-ranking officials from the Patterson Joint Unified School District for allegedly setting up a cryptocurrency mining operation using the district’s resources. The operation, which was conducted on the premises of the district’s 10 schools, involved assistant superintendent and chief business officer Jeffrey Menge and IT director Eric Drabert, who are accused of generating profits for themselves through this illicit activity.
While the DOJ’s statement did not specify the number of schools directly involved in the mining operation or the type of cryptocurrency mined, it highlighted the significant energy demands associated with such activities. Cryptocurrencies like Bitcoin, Monero, Ravencoin, and Dogecoin are among the most commonly mined, with Bitcoin mining requiring substantial electrical power.
The operation not only led to increased electricity costs for the school district but also involved substantial alleged theft, with Menge accused of stealing between $1 million and $1.5 million and Drabert between $250,000 and $300,000. This case emerges amidst broader regulatory efforts to curb energy consumption by crypto miners in the United States, reflecting growing concerns over the environmental impact of cryptocurrency mining.
In response to rising Bitcoin prices and the consequent surge in mining activities, the U.S. Department of Energy (DOE) recently mandated crypto miners to report their energy usage over the next six months. Additionally, the U.S. Energy Information Administration (EIA) announced plans to survey local crypto mining companies about their electricity consumption, emphasizing the need for detailed energy use data.
The issue of excessive electricity use by crypto miners is not confined to the United States. International efforts to address the environmental impact of crypto mining have led to actions such as the Indonesian police shutting down Bitcoin mining operations for electricity theft. These developments underscore the global challenge of balancing the growth of the cryptocurrency sector with sustainable energy use and environmental protection.
Get $200 Free Bitcoins every hour! No Deposit No Credit Card required. Sign Up