State employee is arrested for mining at job

IT Manager is held pending trial and with a bail of $5,000
14 March 2018   964

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

SEC to Need More Info on BTC ETF

SEC is gathering more input from the public – to date, according to the agency, more than 1,400 comments have been submitted
21 September 2018   167

The US Securities and Exchange Commission (SEC) announced the beginning of a formal process for considering the application for the creation of bitcoin-ETF from the New York companies VanEck and SolidX. Nevertheless, the agency appealed to the community for more information. This is stated in the document published on the SEC website.

Institution of such proceedings is appropriate at this time in view of the legal and policy issues raised by the proposed rule change. Institution of proceedings does not indicate that the Commission has reached any conclusions with respect to any of the issues involved. Rather, as described below, the Commission seeks and encourages interested persons to provide comments on the proposed rule change.

The US Securities and Exchange Commission

At the moment, the SEC received about 1,400 comments.

According to the document, the Chicago Board Options Exchange (CBOE) has signed an agreement on the exchange of data on bitcoin transactions, trading and the state of the market with the cryptocurrency trading platform with Gemini.

The agency asked commentators to clarify the position of Gemini in the digital currency market and assess the likelihood of increased volatility at this site in connection with possible trades of bitcoin-ETF.

So, before September 30, the department had to decide on whether to approve, deny or initiate the proceedings. The SEC chose the latter, which is likely to delay the process until the next year.