Prosecutors allege that Jeffrey Menge, the school district’s assistant superintendent, and Eric Drabert, the IT director, procured high-performance video cards for mining purposes. Furthermore, they illicitly utilized school resources, including electricity, resulting in a significant increase in the schools’ electricity expenses.
The individuals involved redirected the proceeds from the sale of the mined cryptocurrencies to their personal crypto addresses. Apart from the illegal mining activities, the Department of Justice has also accused the men of fraud and theft. Menge is alleged to have embezzled between $1 million and $1.5 million, while Drabert is accused of stealing between $250,000 and $300,000, further exacerbating the legal predicament they find themselves in.
The specific cryptocurrencies mined on the school premises have not been disclosed; however, BTC, Monero (XMR), Ravencoin (RVN), and Dogecoin (DOGE) are among the most commonly mined cryptocurrencies in the US when it comes to underground mining.
This incident takes place amidst mounting pressure from US authorities on cryptocurrency miners. On February 1, the US Department of Energy mandated miners to report their energy consumption over a six-month period. According to the Energy Information Agency (EIA), cryptocurrency miners account for an estimated 0.6% to 2.3% of the country’s total energy consumption.
The EIA intends to conduct a study to evaluate the electricity consumption of local mining firms. Miners will be required to furnish detailed information regarding their energy usage, enabling the agency to better monitor energy-intensive operations.