The United States Department of Justice (DOJ) has charged two senior staff members of the Patterson Joint Unified School District in California for allegedly operating a cryptocurrency mining operation on the premises of the district’s schools. According to the DOJ’s statement, Jeffrey Menge, the assistant superintendent and chief business officer, and Eric Drabert, the IT director, worked together to establish a crypto mining farm, utilizing school resources and electricity to generate profits.
The DOJ alleged that Menge and Drabert purchased high-end graphics cards and used them, along with other school district property and electricity, to operate the crypto mining farm. The statement did not specify the number of schools involved in the operation, which comprises 10 schools serving approximately 6,200 students. Additionally, the type of cryptocurrency mined was not disclosed.
Cryptocurrency mining is a process that requires specialized computers to solve complex mathematical problems in order to verify transactions on a blockchain network. This process can be energy-intensive, consuming vast amounts of electricity.
In addition to the crypto mining operation, the DOJ accused Menge of stealing between $1 million and $1.5 million, while Drabert allegedly stole between $250,000 and $300,000. This incident comes amid a broader crackdown on crypto miners by U.S. energy regulators, who are concerned about the industry’s energy consumption.