[2017-01-31] Federal Reserve Employee Mines Bitcoin Using the Fed’s Server

[TwoTimes]

According to various sources, a Federal Reserve employee was caught using the central bank’s internet server to mine bitcoin. Nicholas Berthaume, who worked for the Federal Reserve Board in Washington, was sentenced to a year of probation and fined $5,000 for using unauthorized Bitcoin software on a federal server.

The Inspector General for the U.S. Federal Reserve revealed that the former analyst connected to the bank’s network to earn bitcoins. Berthaume was charged with illegally running unauthorized mining software on the Fed’s server from 2012 to 2014.

Read More Here:   https://news.bitcoin.com/federal-reserve-employee-mines-bitcoin-using-the-feds-server/

[1715146539]

1715146539

[1715146539]

1715146539

[1715146539]

1715146539

[eckmar]

Well I guess he is happy now. Time he spent mining (from 2012 to 2014) earned him a lot more than few thousands of dollars that he is fined with that servers, especially since that was not time of ASIC miners (first was here in 2015)

[LLec]

They say how much bitcoins were mined using those fed reserve servers?
Since they are feds property wouldn't they ask for those coins?
Sort of like how they confiscated all the bitcoins from silk road and auctioned them off.
Didn't they realize that he made more than just $5000 using their own hardware while he was employed?
I think he got sentenced very lightly since he was a former fed agent.
Favourtism maybe?

From a different article that says more about it but it does not say how much in bitcoin he managed to mine during that time. Wouldn't an investigation by the bureau themselves reveal this so to substantiate the proper amount to fine and the right amount of time to prosecute him for?

"A former Federal Reserve employee was sentenced to 12 months’ probation and issued a $5,000 fine for installing unauthorized bitcoin software on a Fed server, a government watchdog said Monday.

Nicholas Berthaume, who worked as a network systems communications analyst at the Fed board in Washington, installed the software so he could connect to an online bitcoin network to earn bitcoins, the Fed’s inspector general said. The software was in place from about March 2012 to June 2014, according to a court document.

He was subsequently fired, the IG said, and struck a deal in October to plead guilty in U.S. District Court for the District of Columbia to one misdemeanor charge of unlawful use of government property, a charge that carried a fine of up to $100,000 and a year in jail. He received his sentence Friday.."

Source: https://www.wsj.com/articles/former-fed-employee-fined-for-installing-bitcoin-software-on-fed-server-1485791030?mod=e2tw

[Kprawn]

The most obvious problem here is not the fact that he used the fileservers to mine Bitcoin, but rather that he weakened the security of

the network, by granting him remote access from his home to manage this. You can just imagine what would have happened if

someone with bad intentions accessed their network from his "home" computer. 

[leps]

The most obvious problem here is not the fact that he used the fileservers to mine Bitcoin, but rather that he weakened the security of

the network, by granting him remote access from his home to manage this. You can just imagine what would have happened if

someone with bad intentions accessed their network from his "home" computer. 

Exactly!
Homeland security fail!

[cr1776]

Well I guess he is happy now. Time he spent mining (from 2012 to 2014) earned him a lot more than few thousands of dollars that he is fined with that servers, especially since that was not time of ASIC miners (first was here in 2015)

Just FYI, the Avalon ASICs arrived in early 2013, so for most of 2013 and 2014 he was competing with the ASICs.  They arrived within a few months of the Nov 2012 halving.

[maku]

Well I guess he is happy now. Time he spent mining (from 2012 to 2014) earned him a lot more than few thousands of dollars that he is fined with that servers, especially since that was not time of ASIC miners (first was here in 2015)

What are you talking about? ASIC is way older, these circuits weren't introduced in 2015, AFAIK first ASIC was delivered to miners in January 2013.
First ASIC (Application Specific Integrated Circuit) was made by Avalon and performed at 67.5 GH/s.

[aso118]

According to various sources, a Federal Reserve employee was caught using the central bank’s internet server to mine bitcoin. Nicholas Berthaume, who worked for the Federal Reserve Board in Washington, was sentenced to a year of probation and fined $5,000 for using unauthorized Bitcoin software on a federal server.

The Inspector General for the U.S. Federal Reserve revealed that the former analyst connected to the bank’s network to earn bitcoins. Berthaume was charged with illegally running unauthorized mining software on the Fed’s server from 2012 to 2014.

Read More Here:   https://news.bitcoin.com/federal-reserve-employee-mines-bitcoin-using-the-feds-server/

It has taken such a long time for the Federal Reserve to bring him to book? Especially when he compromised network security?
That doesn't reflect too well on the Federal Reserve.

[Papa Bear]

The story of the rogue Federal Reserve employee shows that there are clearly some members of the central bank who are more interested in cryptocurrencies than the private bank’s fiat money.

[strasboug]

Lol, government employees have not much to do during the work, that's why Trump will cut the inefficient government workforce. I remember a friend told me that their company analysis the government web traffic and found a lot from superball streaming videos and fashion show videos.

[sportis]

If I had not read, but I heard it from someone I would think that is a silly joke. On the other hand I am surprised that an employee of Federal Reserve mines bitcoin like as saying  an employee of coca-cola he drinks pepsi.  Beyond the joke i am really surprised by the ease that an employee, an analyst as it had written in the article, had the credentials to install software in the internet server of Fed. I wonder why the IT department of bank gave him this possibility to deploy any software this analyst wanted. So, I believe that they are applying very lousy computer security measures.

[Qartersa]

What a funny article. Again from spiderman the over used saying goes, "with great power, comes great responsibility." The Federal Reserve just trusted the wrong person to entrust their servers. Well, probably the guy is rich now and wouldn't even need the job he lost. He might even had his own mining rigs because of the free computing power he got from the servers.

[tiggytomb]

Haha, Crazy how he could get away with that for so long.  He would have made a nice bit back then.

[_nur]

i wonder what's the hardware spec...

LOL to feds

[Qartersa]

i wonder what's the hardware spec...

LOL to feds

Most likely the specs are just regular servers. Like 2-4 cpus and 2-8 gb ram each. Or a bit more, and most likely they are all just CPU intensive servers and not with GPU. Hence he could have only profited when it was only CPU mining and not really when it was the age of ASIC miners.

[Arcteryx]

i wonder what's the hardware spec...

LOL to feds

Probably Dell servers until they go off warranty then to HP servers. I would be very surprised if they are still using IBM cause those were installed in the 80's and should of been upgraded in 2000's. Security issues would be the major concern here cause of no firmware updates offered for outdated equipment.

Lol, government employees have not much to do during the work, that's why Trump will cut the inefficient government workforce. I remember a friend told me that their company analysis the government web traffic and found a lot from superball streaming videos and fashion show videos.

This would save alot of money for the government and they should fire more people that aren't doing their jobs just like the attorney general was and replaced with someone who actually wants to do their job and not be accused of treason against the US president and thus against US policies put in place.
It does not matter if you believe in the president or not but you must abode by the laws put in place to keep the security of the country you are assigned to uphold.