DOJ Accuses Pair of Crypto Mining in School District Amidst Ongoing US Energy Investigation

The Department of Justice (DOJ) in the United States has filed charges against two high-ranking employees of the Patterson Joint Unified School District. They are accused of running a cryptocurrency mining operation within the premises of the district’s 10 schools, utilising school resources, and causing a surge in electricity costs. 

According to a recent DOJ statement, Jeffrey Menge, the assistant superintendent, and chief business officer of the Patterson Joint Unified School District, collaborated with Eric Drabert, the IT director for the school district, to manage a cryptocurrency mining farm and personally benefit from the generated profits.

“They purchased high-end graphics cards and used those cards, together with other school district property and electricity, to operate a cryptocurrency mining” farm at the school district.”

However, the statement failed to provide clarity regarding the specific number of schools within the district utilised for the crypto mining operation, despite the district comprising 10 schools catering to around 6,200 students. Moreover, the type of cryptocurrency mined was not disclosed.

This development coincides with the recent crackdown by the U.S. energy regulator on cryptocurrency miners, part of an initiative aimed at reducing energy wastage in the country.

On February 1, the United States Department of Energy (DOE) announced that crypto miners are obligated to disclose their energy consumption over the next six months. This decision stems from apprehensions surrounding the recent surge in Bitcoin prices, which has triggered an upswing in crypto mining activities.

Just a day earlier, the U.S. Energy Information Administration (EIA) revealed its intention to conduct a survey measuring the electricity usage of local crypto mining companies, starting next week. Miners are mandated to provide details regarding their energy consumption in response to the survey.

This issue extends beyond the borders of the United States, as regulators worldwide are actively working to manage and curb excessive electricity consumption.

According to the Bitcoin Mining Council, there has been at least a 58% sustainable energy mix as of 2022, with only improvements coming since, hence, things are heading in the right direction.