Minnesota Man Avoids Jail Time for Cryptojacking Former Workplace

A Minnesota man was sentenced to fines and probation after a yearlong Ethereum cryptojacking scheme. He compromised his former employer’s systems to mine ETH every night for around a year.

Despite causing $45,000 in server costs, the culprit earned less than $6,000. Economic desperation fueled this low-profile crime, and deteriorating circumstances may lead to similar incidents.

Ethereum Cryptojacking Explained

Cryptojacking, exploiting a computer to mine digital assets, is an old scheme in the crypto space that has popped back up periodically. Recently, a Minnesota man was sentenced to three years of probation and a $45,000 fine for cryptojacking his former employer to mine Ethereum.

According to local press, Joshua Paul Armbrust used a cryptojacking scheme to surreptitiously mine Ethereum for over a year.

After resigning from Digital River, a payment processing and e-commerce firm, he used his AWS access to making the firm’s computers mine ETH from 6 PM to 7 AM on a daily basis.

“The defendant’s conduct strikes at the core of digital trust and security. Companies rely on former employees to act ethically, even after separation, and to respect corporate systems and data. Unauthorized access to corporate cloud infrastructure… exposes sensitive systems to potential compromise,” said Assistant US Attorney Bradley Endicott.

However, compared to some previous cryptojacking schemes, this Ethereum mining operation was rather small. In total, Armbrust only managed to mine and liquidate $5,895 worth of ETH. These activities cost Digital River upwards of $45,000 in service fees.

All things considered, this wasn’t an effective operation.

Still, the defendant accepted responsibility for these actions, claiming that he used the funds to care for his ailing mother. This, and the fact that he didn’t cover his tracks, helped him win a light sentence.

Although Armbrust will have to recoup Digital River’s server costs and serve probation, he won’t be incarcerated.

Rampant greed is fueling today’s crypto crime supercycle, but real desperation powers illicit activities too. Small-scale offenses like this Ethereum cryptojacking scheme can remain undetected for years thanks to their low profile.

If the US’s economic prospects continue deteriorating, we might see more of this behavior soon.