NYC Government Employee Caught Mining Bitcoin On Work Computer

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




Lets Buy The Dip Cognitive Dissonance Wed, 08/02/2017 - 00:27 Permalink

good fo him, he was doing nothing wrong. screw the govt....crypto currencies have a big bright future. 1) checkout the ST blog2) 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. 

In reply to by Cognitive Dissonance

HRH Feant2 (not verified) Tue, 08/01/2017 - 22:46 Permalink

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.

Deathrips NoWayJose Wed, 08/02/2017 - 02:01 Permalink

Jose 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.  RIPS

In reply to by NoWayJose

e_goldstein Tue, 08/01/2017 - 22:52 Permalink

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 Tue, 08/01/2017 - 22:52 Permalink

  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?

VWAndy Tue, 08/01/2017 - 23:03 Permalink

 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?

East Indian Tue, 08/01/2017 - 23:24 Permalink

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 

cheech_wizard Tue, 08/01/2017 - 23:33 Permalink

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 (not verified) Wed, 08/02/2017 - 00:02 Permalink

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.