State employee is arrested for mining at job

IT Manager is held pending trial and with a bail of $5,000
14 March 2018   612

Today Florida local outlet reported an arrest of Matthew McDermott, an IT Manager  for Florida's Department of Citrus - a state government agency that administers citrus industry. Florida Department of Law Enforcement, according to Tampa Bay Times jailed the state employee for supposedly exploiting office computers to mine cryptocurrency.

Mr. McDermott reportedly was mining bitcoin and litecoin with the department's computers resources, and is charged with grand theft and official misconduct.

FDLE analyzed the utility bills October 2017 through January 2018 and discovered a sudden and significant increase by over 40% - another evidence of the prolific cryptocurrency mining. Moreover, the IT Manager also acquired 24 units of GPU using the office account with the overall charge resulting in approximately $22,000. As GPUs have much faster computing characteristics, that comes at a cost of power consumption - a parallel with the utilities bill surge.

This case follows news of last week reported investigation on another state - Louisiana: Bureau of Investigation had allegedly discovered hardware that could have been used for mining cryptocurrency. In 2017 two similar cases were sighted: Federal Reserve's Office of the Inspector General and New York's Department of Education

Crypto Exchange White Label Service launched by OKEx

OKEx, one of the biggest exchanges in the world, has declared the run of a crypto exchange creation programme ‘Digital Asset Exchange Open Partnership Program’
20 June 2018   73

The announcement claims that the programme is intended to “nurture a new generation of digital asset exchanges”. To establish a new crypto exchange, interested parties have to provide OKEx with a domain name, logo, and specialties of the management team. They are assured to possess “solid industry experience, quest for service excellence, and strong industry influence.”

Applicants should also deposit 500,000 OKB tokens into their accounts. This equals around $2.5 million at the present rate, according to coincodex.com. OKB is a utility token that were first sold in March of this year in packages of up to 100, each costing $100. They can be applied to settle transaction fees on the exchange and traded for Bitcoin, Ethereum and Tether.

The applicants will get access to OKEx’s fitting system (which links up buy and sell orders), cold and hot wallets (offline and online cryptocurrency storage), clearing system (which handles money transfer), client support system, and know-your-customer and anti-laundering systems. They will also get support from the OKEx technical team.

100 places are suggested by the programme in its first phase. It is anticipated to start in July. The announcement also points out the setup that the new exchanges must have. They will develop their own native tokens, and distribute them as follows:

  • 25 percent to themselves;
  • 24 percent to OKB holders;
  • and 51 percent to be mined.

OKEx explains the mechanisms by which the tokens will be mined/released. The term white label was firstly invented in the music industry - a white label vinyl record was a release so new that it had not yet been labelled, a much sought-after thing. Presently it cites to a service or product manufactured by one company and sold to another for re-sale under a different brand name.