In a surprising turn of events, a man from northern Minnesota has been charged in a serious crime known as “cryptojacking.” Joshua Paul Armbrust, who is 44 years old and lives in Orr, Minnesota, was recently indicted for using his former employer’s resources without permission to mine cryptocurrency. This case has caught the attention of authorities and the public because it shows how technology can be misused for personal gain.
What Is Cryptojacking?
Cryptojacking is a type of cybercrime where someone uses another person’s computer or online resources to mine cryptocurrency without permission. Cryptocurrency is a digital form of money, like Bitcoin or Ethereum, that can be created or “mined” using computer power. When someone mines cryptocurrency, they are solving complex math problems using powerful computers. This process requires a lot of energy and can slow down the victim’s computer, leading to higher electricity bills and other problems.
Armbrust’s case is a classic example of cryptojacking. After he left his job at Digital River, a company that specializes in e-commerce and payment processing, he took advantage of the company’s Amazon Web Services (AWS) account. AWS is a popular cloud computing service that many businesses use to manage their online operations. By accessing this account without permission, Armbrust was able to use the company’s powerful computers to mine Ethereum.
How Armbrust’s Scheme Worked
According to court documents, Armbrust’s illegal activities began after he resigned from Digital River in February 2020. Instead of moving on and finding a new job, he started a scheme that would end up costing his former employer a lot of money. Between December 2020 and May 2021, he accessed Digital River’s AWS account multiple times without authorization.
During this time, Armbrust used the company’s computers to mine Ethereum, which led to significant costs for Digital River. The expenses incurred from his actions totaled over $45,000. This amount includes not just the mining costs but also the extra energy used by the computers, which could lead to higher bills for the company.
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To make matters worse, Armbrust didn’t just keep the mined Ethereum to himself. He directed the cryptocurrency into a digital wallet that he controlled. Later, he transferred the mined Ethereum to two accounts on Coinbase, which is a well-known platform for buying and selling cryptocurrency. Both of these accounts were registered only in his name, making it clear that he was trying to hide his activities from others.
The investigation revealed that Armbrust liquidated the Ethereum he mined, which means he sold it for real money. He reportedly made over $7,000 from these transactions and transferred the money to his personal bank account at Wells Fargo. This entire scheme not only harmed Digital River financially but also raised serious questions about cybersecurity and trust in the workplace.
Legal Actions and Implications
Joshua Paul Armbrust has been officially charged with one count of computer fraud. He made his first court appearance on November 1, 2024, in front of U.S. Magistrate Judge John F. Docherty. This case was investigated by the FBI, which often looks into cybercrimes and other illegal activities involving technology.
It is important to note that an indictment is just an accusation. It means that a grand jury has found enough evidence to formally charge someone with a crime. However, being indicted does not mean that Armbrust is guilty. In the eyes of the law, he is considered innocent until proven guilty. The legal process will determine whether he will face any penalties for his actions.
Armbrust’s case serves as a reminder of the growing risks associated with digital technology and the internet. As more businesses rely on cloud services and other online tools, the potential for cybercrime also increases. Cryptojacking is one of many ways that individuals can exploit technology for their benefit, often at the expense of others.
This situation highlights the importance of cybersecurity for companies and individuals alike. Protecting sensitive information and computer resources is essential in today’s digital age. Companies must be vigilant and ensure that their systems are secure to prevent unauthorized access and potential financial losses.
