29 April 2017
Visit EBAday.com

Former Fed staffer fined for using server to mine bitcoin

01 February 2017  |  11480 views  |  2 Bitcoin

A former Federal Reserve employee has been sentenced to 12 months' probation and fined $5000 for installing software on a Fed server to use its computing power to earn bitcoins.

Network systems communications analyst Nicholas Berthaume pleaded guilty to one misdemeanour count of unlawful conversion of government property in October.

According to the plea agreement, Berthaume installed the software on a Board server to connect to an online Bitcoin network in order to earn bitcoins. How much he made could not be established.

He also "modified certain security safeguards so that he could remotely access the server from home," says a statement from the central bank’s Office of Inspector General.

When confronted, Berthaume denied any wrongdoing before remotely deleting the software. However, forensic analysis led to his firing and eventual admission of guilt.

Comments: (2)

Dirk Kinvig
Dirk Kinvig - Finextra - London | 01 February, 2017, 10:04

Any mention of how many btc he was able to mine? Assuming that it was only the one non-dedicated server and the profits were split with other participants, then I'll wager significantly less than the value of the fine.

Be the first to give this comment the thumbs up 0 thumb ups! (Log in to thumb up)
Matt White
Matt White - Finextra - Toronto | 01 February, 2017, 13:14

Yes, a mention...in the story, Dirk!

"How much he made could not be established."

Be the first to give this comment the thumbs up 0 thumb ups! (Log in to thumb up)
Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Fed paying close attention to 'significant' blockchain

Fed paying close attention to 'significant' blockchain

12 October 2016  |  8693 views  |  0 comments | 28 tweets | 23 linkedin
Bitcoin tumbles as hackers steal $65 million from Hong Kong exchange

Bitcoin tumbles as hackers steal $65 million from Hong Kong exchange

03 August 2016  |  9481 views  |  3 comments | 34 tweets | 30 linkedin
Bangladesh Bank considers lawsuit against NY Fed over $81m hack

Bangladesh Bank considers lawsuit against NY Fed over $81m hack

23 March 2016  |  6102 views  |  0 comments | 2 tweets | 3 linkedin
Brit charged with hacking US Fed's computer servers

Brit charged with hacking US Fed's computer servers

28 February 2014  |  3389 views  |  0 comments | 4 tweets | 4 linkedin

Related company news

 

Related blogs

Create a blog about this story (membership required)
Visit capgemini.comvisit vasco.com/news/PSD2-compliant-solutionsvisit dh.com

Top topics

Most viewed Most shared
Six global banks join Swift DLT trialsSix global banks join Swift DLT trials
7711 views comments | 15 tweets | 36 linkedin
BBVA steps up fintech acquisition strategy with purchase of OpenpayBBVA steps up fintech acquisition strategy...
6961 views comments | 17 tweets | 16 linkedin
Should central banks open up payment and settlement systems to non-banks?Should central banks open up payment and s...
5979 views comments | 22 tweets | 21 linkedin
Token raises $15.7 million as PSD2 approachesToken raises $15.7 million as PSD2 approac...
5924 views comments | 20 tweets | 20 linkedin
hands typing furiouslyMobile Technology, Its Importance, Present...
5678 views 0 | 2 tweets | 1 linkedin

Featured job

to 120K base, £300K ote, stock options
London, UK

Find your next job