Duo Charged for Crypto Mining in School District Amid US Energy Scrutiny
The United States Department of Justice Charges School District Staff for Operating Crypto Mining Operation The Department of Justice (DOJ) in the United States has filed charges against two high-ranking members of the Patterson Joint Unified School District for allegedly running a crypto mining operation using school resources and causing a significant increase in electricity…
The United States Department of Justice Charges School District Staff for Operating Crypto Mining Operation
The Department of Justice (DOJ) in the United States has filed charges against two high-ranking members of the Patterson Joint Unified School District for allegedly running a crypto mining operation using school resources and causing a significant increase in electricity costs.
According to the DOJ, assistant superintendent Jeffrey Menge and IT director Eric Drabert collaborated to set up a crypto mining farm at 10 schools within the district, profiting from the venture.
However, the statement did not specify which cryptocurrencies were being mined or how many schools were involved. The Patterson Joint Unified School District serves approximately 6,200 students.
Some of the most popular cryptocurrencies that are typically mined include Bitcoin (BTC), Monero (XMR), Ravencoin (RVN), and Dogecoin (DOGE).
The Impact of Crypto Mining on Energy Consumption and Recent Government Crackdown
The rise in popularity of cryptocurrencies, such as XCN, WAX, VVS, ZIL, and WLUNA, has led to a surge in mining activities worldwide. However, the process of mining a single Bitcoin as a solo miner is estimated to consume a whopping 266,000 kilowatt hours of electricity, equivalent to seven years of continuous energy consumption at a rate of 143 kWh per month. This has raised concerns about the environmental impact of crypto mining.
Allegations of Fraud and Government Intervention
In addition to the high energy consumption, the crypto mining industry has also been plagued by allegations of fraudulent activity. The United States Department of Justice (DOJ) has accused individuals such as Menge and Drabert of stealing millions of dollars through illegal activities in the crypto market.
As a result, the U.S. energy regulator has recently launched a crackdown on crypto miners, aiming to reduce energy waste in the nation. The DOE has mandated that all crypto miners must report their energy consumption for the next six months, following the surge in Bitcoin prices and subsequent increase in mining activities.
The Emergence of Web 3.0 and its Impact on Crypto Projects
The rise of Web 3.0, also known as the decentralized web, has brought about a new wave of innovation in the crypto industry. This includes projects such as Tesla’s AI Day, which aims to utilize artificial intelligence and blockchain technology to revolutionize the automotive industry.
Web 3.0, which started gaining traction in the early 2000s, differs from its predecessors, Web 1.0 and Web 2.0, by focusing on decentralization and user ownership of data. This has led to the emergence of top Web 3.0 crypto projects, which are leveraging blockchain technology to create a more transparent and decentralized internet.
The Future of Web 3.0 and the Need for Education
As the world continues to embrace Web 3.0 and its potential to disrupt various industries, it is crucial for individuals to educate themselves on the differences between Web 1.0, Web 2.0, and Web 3.0. This will not only help in understanding the impact of these technologies but also enable individuals to make informed decisions when investing in top Web 3.0 crypto projects.
Regulators Crack Down on Crypto Mining Companies’ Electricity Usage
Just one day prior, the U.S. Energy Information Administration (EIA) announced plans to launch a survey aimed at measuring the electricity consumption of local crypto mining firms. Beginning next week, these companies will be required to provide details on their energy use.
This issue is not limited to the United States, as regulators worldwide are taking action to curb excessive electricity usage.
In December 2023, Cointelegraph reported that Indonesian police shut down 10 Bitcoin mining operations, accusing the organizers of stealing electricity worth nearly $1 million.