NYC Government Employee Caught Mining Bitcoin On Work Computer

Tyler Durden's picture

Mining bitcoins is a notoriously electricity-intensive process better suited for areas where resources are subsidized by the government (like the mountainous Northern China, where a cluster of some of the world’s largest mining pools are located), or are at least exceedingly cheap. Cities like New York, are, of course, not ideally suited for the task of mining. But then again, if you’re not paying for the electricity, then it may as well be free, right?

NYC Department of Education headquarters

That, essentially, was New York City teacher Vladimir Ilyayev’s plan when he started mining bitcoin on his work computer, running the software during the evening while monitoring it from home, according to CoinDesk, which discovered paperwork relating to Ilyayev's hearing before the BOE's Conflicts of Interest Board.

“According to a recently published disposition from the City of New York Conflicts of Interest Board, department employee Vladimir Ilyayev admitted to mining bitcoin between for a period of several weeks between March and April 2014. Bitcoin mining is an energy intensive process by which new transactions are added to the blockchain, generating new coins with every block that is created.”

In the disposition, Ilyayev admits that “beginning on March 9, 2014, at times when I was required to perform work for DOE, I made several attempts to install bitcoin mining software on my DOE computer without DOE authorization. After being thwarted five or six times by DOE’s security software, I circumvented the DOE security software and successfully installed bitcoin software on my DOE computer.”

Ilyayev succeeded in concealing his scheme for barely a month; the software was quickly discovered by BOE employees and disabled.

“I ran bitcoin mining software from my DOE computer from 6 p.m. until 6 a.m. every night from March 19, 2014 until April 17, 2014, when my bitcoin mining software was shut down by DOE’s Division of Instructional and Information Technology. During that time, I monitored the progress of my bitcoin mining software from my home computer using remote access software.”

The conflicts board sanctioned Ilyayev for violating city statutes relating to using city time and resources for financial gain. Still, once his $611 restitution was paid, Ilyayev likely pocketed at least a few hundred dollars, maybe more.  

Unsurprisingly, public records show that Ilyayev isn’t the first BOE employee to try and mine bitcoin using city resources, as Coin Desk pointed out.

“Public records indicate that Ilyayev's case isn't the first time that a New York Department of Education employee was investigated for using their work equipment to mine bitcoins.


According to a Conflicts of Interest Board letter from April 2015, a network engineer reportedly tried to run mining software on his Department of Education computer. However, the engineer was ultimately cleared as "there is no evidence that [he] successfully obtained bitcoin."


In January, an employee of the Federal Reserve Board of Directors was fined $5,000 and placed on probation after he was caught mining bitcoins on a server owned by the US central bank.”

You can read Ilyayev’s disposition below:

2014-440-ilyayev by zerohedge on Scribd



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Cognitive Dissonance's picture

I looked for ET on my work computer. Does that count?

<Beam me up Scotty.>

NoDebt's picture

It's 'Office Space' in real life.

Here's the scene from the movie I know you want to watch after reading this article (the copier smashing scene):

tmosley's picture

Surprised there isn't a story on the fork today. Guess it is going too smoothly to merit a mention.

BCC is blowing up though. Cashed in my LTC and some ETH (since I can't do shit with my BTC for a day or two) for some. Already up quite a bit.

SethPoor's picture

Did someone ask? Who gives a fuck?
Give a weather report next time.

tmosley's picture

Cry harder. Not enough salt in that river.

MANvsMACHINE's picture

And he's got an idiotic handle to boot.

Seth Poor, get it. Hardee har har....

python_snake's picture

I'm making over $7k a month working part time. I kept hearing other people tell me how much money they can make online so I decided to look into it.!pa56d: Well, it was all true and has totally changed my life. This is what I do... !pa57d:

HankPaulson's picture

I enjoy mining bitcoin, and I think you enjoy it when I mine bitcoin, too.


Can two hearts be wrong?

pugilist's picture

5-6 years ago, i worked for a university and over the summer the computer lab staff were mining bitcoin for "fun". I'm pretty sure they are kicking themselves now.

land_of_the_few's picture

There's some old IT joke about if you must (remotely) steal (processor) cycles, you may as well go big and take a Harley .....

of course these days you might need more power and aircon if everyone starts doing it ... older processors were burning lots of power all the time regardless of what they were doing :P

Raffie's picture

You haters are SO jealous that good money is in cryptos and nice profits too.

Face it, you all suffer from Crypto Envy.


Urban Roman's picture

I'm waiting for btc-e to come back up, myself. Most of my stash was in LTC.

It's probably nothing...

tmosley's picture

Sure hope so. Cautionary tale.

If/when you do get it back, highly suggest you put it in the Exodus wallet. Links in to shapeshift, so you can trade without leaving funds on the exchange.

Lets Buy The Dip's picture

good fo him, he was doing nothing wrong. screw the govt....

crypto currencies have a big bright future. 

1) checkout the ST blog

2) These guys called the bull market backin 2009 2 days early, and very very accurate. 

3) Their newsletter here - is very accurate and telling how ETH could be $400 by XMAs and BITCOIN going past $3200 soon. 

4) They touched on BITCOIN - click here. And told their members to jump in when it was $30 bucks. They were laughed at. Now look at the price. 

I think folk or no folk these currencies dip every 6 months, only to be bought back several months later to the highs. 

Serious pattern there, for people with lots of money at their disposal. 

Sudden Debt's picture

He did, he used governement property for his own gain.

For me, that's the same as being a clinton.

And what that moron didn't figure out is that you need some serious hardware to mine bitcoin. 

And the bitcoin you could mine with your desktop isn't worth the loss of your job.

HRClinton's picture

The Fed is laughing its was off. Their "Dollar mining" takes only seconds and uses only a few Watts of electricity. 

These working Schleps got nothing on the (((Moneychangers))).

If you like your pocket change, you can keep your pocket change. Unless your name is Vlad. 

booboo's picture

Goddamn russians, I knew it

HRClinton's picture

It's his own damn fault for going by the name of Vlad, rather than Schlomo.

He'd still be mining, if he'd minded PR rules.

HRH Feant2's picture

Damn, he was busted. I hope he kept those bitcoins! Funny article. Those government employees. So much free time on their hands. So little work.

any_mouse's picture

He ran the miner in the off hours, not during his work day.

NoWayJose's picture

But... this is not possible - or so they say....

How can you make more BitCoin out of..... thin air?

BustainMovealota's picture

You don't know a whole lot about Bitcoin but Google is your friend.

Deathrips's picture



They made it out of thin air like they made dollars and digital blips that they buy humans lives with. Cryptocurrencies are one alternative to central control..or just another steam valve. I personally dont think computers are going away and I dont think physical assets or personal responsibility are going away either. I do know that they will create more fiat to buy more power.....till it doesnt work anymore.




Schmuck Raker's picture

I am shocked, SHOCKED to learn of larceny in government.

BustainMovealota's picture

Hell, with the complexity hash where it is he could not have been making jack shit on his one computer.  

Cognitive Dissonance's picture

Back in 2014 it wasn't quite as complex. Plus the electricity was free. ;-)

Mr. Universe's picture

I know, it's like the old saw; How much does it cost to mint a penny? Less than a nickle.

Bill of Rights's picture

Typical if it's free it's for me if I have to pay no way...

Xena fobe's picture

NYC should open a bitcoin mining dept and hire him.

I wonder if he retired to mine full time?

e_goldstein's picture

The conflicts board sanctioned Ilyayev for violating city statutes relating to using city time and resources for financial gain.

If that's the case then every department in the city needs to be shut down.

Yen Cross's picture

  The 1/2 growth is exponential  in NYC.  Was his job counted as full time by the BLS?

  Is there a column in BLS statistics for 1/2 time Larcenist?

Obsidian Samctum's picture

Lol he was probably making a penny worth of btc a month mining with his work computer.

tmosley's picture

In 2014 he was doing alright.

Fiction Peddler's picture

..and he probably used all of $5 worth of electricity

put a kettle on's picture

Wait, so is this what all those lucky people posting here about making $7,000 working a month from home are doing?

TIMBEEER's picture

That 7k guy is hiring tranny prostitutes for arab clients, fortunately it's forbidden in my country.

I rather mine Eth than let myself be mined by a hairy arab guy for money after a sex change.

VWAndy's picture

 I must live way out in the Tullies. Who would mess around like that at work? That whole building must be full of scummy people.

  It must be pretty different working with the owners not around at all?

globalintelhub's picture

Busted!  Should have learned to trade first.

Yen Cross's picture

 Something tells me that clown can't tie his shoes by himself. I'll bet the problem is much worse, but he's the designated " lawnmower man".

East Indian's picture

those days are gone forever. now it is dedicated ASIC mining rigs, costing tens of thousands of dollars... and the Chinese competition.

But you can still mine some low end coins for coffee 

TIMBEEER's picture

I'm making 9K a year by mining the 'low end coins' with 4 Desktops. Not bad, electricity 1.5K. It's a hobby, it's fun, it's paid for.

buzzkillb's picture

Very much this. So many screw around with their gaming PC to mine at night and realize this might be worth trying out with more than 1 GPU.

Though circumventing security on a govt. computer is completely legal. Just ask HER.

ThanksChump's picture

Gov pcs only have the cpu. No nvidia gpu, no spare power for an asic card.


Even way back in ought 14, he'd make less than 1/10th the per kwh cost. The city should have fined him two month's DOE Con-Edison bill.

jago's picture

"I'm making 9K a.." lol thought this was spamola.

nc551's picture

A corporate style computer will be able to mine a few cents a week.  What an idiot.

steve2241's picture

Disposition or Deposition? lol

moorewasthebestbond's picture

or voice recognition gone wrong.

cheech_wizard's picture

Ahhh, but you have to wonder how many server farms in the US are mining bit coins running cron jobs at night by some enterprising IT staff... After all, the work load lessens at night, so they ought to make use of those unused cpu cycles...

Running it from your work pc is just stupid.

Standard Disclaimer: Just putting it out there (wink, wink, nudge, nudge)


chosen's picture

Sounds like it would be profitable if you had a free power source, like a library or dorm room.  Still you won't make much money.  Seems like kind of a waste of time for an individual.