Secret cryptocurrency mining gets Chinese principal fired

Chinese school teachers caught mining Ethereum at work

Chinese School Principals Caught Mining Ethereum At Work

Chinese news site HK01 (via CCN this week) reports that principal Lei Hua was sacked after authorities found he and vice principal Wang Zhipeng were found to be running a collection of rack-mounted cryptocoin mining units on school grounds.

Puman Middle School's electricity bill was affected by the machines, with one local report claiming that the cryptocurrency miners used 14,700 yuan (£1,600) of electricity.

The excessive electricity consumption had previously been reported to the headmaster, Lei Hua, but he reportedly dismissed it as being caused by air conditioners and heating devices. Powerful mining machines can generate more cryptocurrency, but typically become hot and noisy when operating and use large amounts of power.

Lei Hua, the principal, allegedly installed eight mining machines in his school's computer room between the summers of 2017 and 2018.

Media captionBitcoin explained: How do crypto-currencies work? He also apparently brought his vice principal in on the scheme, and a ninth machine was added in January.

A school Ethereum-mining operation got a principal in trouble in China, according to reports.

The headmaster was sacked in October and his deputy received an official warning. A local authority responsible for "discipline inspection" has seized the money that was made through the mining operation, but the amount was not specified.

"The noise and heat of nine actively running mining machines would have been very noticeable", said Matthew Hickey, a cyber-security expert at Hacker House. $1440). The relatively small-scale ether mining operation consumed an average of 21 kilowatt-hour of electricity each day.

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