World's Largest Oil-Pipeline Company Uncovers Illegal Crypto Mining Operation

The world’s largest oil pipeline company has a cryptocurrency problem.

According to Reuters, officials at Transneft revealed that somebody  - presumably an employee - used the company’s computers for the unauthorized mining of Monero, the world’s eleventh-largest digital currency with a market capitalization of nearly $5 billion.

Comments from company officials seem to suggest that illegal crypto mining was discovered on more than one occasion.

“Incidents where the company’s hardware was used to manufacture crypto-currency have been found. It could have a negative impact on the productivity of our processing capacity,” Transneft Vice-president Vladimir Rushailo told a company meeting. He did not elaborate.

Russian authorities have repeatedly expressed their intentions to regulate the market for digital currencies after initially threatening to jail anybody caught mining or trading them.

However, Russia’s stance on bitcoin has evolved since 2013. The Russian government and the Ministry of Finance are now seeking to dominate the digital currency by regulating commerce in crypto while also using blockchain technology to its advantage. Over the summer, a close ally of President Vladimir Putin launched a $100 million initiative to transform Russia into a digital-currency mining powerhouse.

Russia’s central bank has said there were risks that cryptocurrencies could be used for money laundering and the financing of terrorism.

Some have speculated that Russia, Venezuela and Iran - three large oil exporters who are struggling with US sanctions because they depend on the dollar to sell their oil - could launch a decentralized digital currency akin to bitcoin - something that would allow anonymous transactions on top of a blockchain - to facilitate oil contracts and bypass the US financial system.

As Tom Luongo pointed out back in October, Russia’s sometimes bipolar approach to regulating crypto makes sense when you consider the law-and-order priorities of Putin’s government. Putin has alternatively praised and criticized digital currencies.

But as far as most experts can tell, the goal with Russian official crypto-policy is to stamp out the illegal activities – the money laundering, terrorism-financing, human-trafficking, etc. – while simultaneously using the technology to modernize Russia’s internal capital handling capabilities.

Of course, this unauthorized mining activity at Transneft would fall into the latter camp.
 

Comments

J S Bach NoDebt Fri, 12/15/2017 - 18:06 Permalink

The term "crypto-mining" has hackable written all over it in my primitive mind.I can't even put it into words, but this whole bitcoin/crypto thing is dubious to me.  Knowing how people are, it just seems so vulnerable to corruption and "theft".  It's not something you can tangibly put into your possession - EVER.  It's totally reliant on trust and internet fluidity.Maybe this truly is the monetary way of the future, and I honestly hope I'm wrong... but my instincts rarely fail me.

In reply to by NoDebt

DownWithYogaPants kochevnik Fri, 12/15/2017 - 19:32 Permalink

Dear RussiaYou have taken the first step by kicking out the Rothchild bankers.  Now take the second step and take up CC with a vengence.  That's how you will defend yourself the most effectively..........by killing off the western bankers.  Let it be completely free and unregulated. Then you'll kill them for sure.  You will have the number 1 country in the world if you do this.

In reply to by kochevnik

Akzed NoDebt Fri, 12/15/2017 - 19:23 Permalink

If I needed to launder millions of dollars a month I would pay someone who works for a company with big fat computers to plug my thumb drive into his PC a couple times a week. $10 grand a month I'd pay him, with the stipulation that when he got caught he would observe omerta or else.But this guy's a lot smarter than I am. https://www.youtube.com/watch?v=YSn7IomisycIn one of these vids they discuss how all the slots in Vegas are used by the in croud as random number generators.

In reply to by NoDebt

maxblockm nope-1004 Sat, 12/16/2017 - 05:18 Permalink

If Bitcoin is #fakemoney, why will dealers give you gold for it?If Bitcoin is not #fakemoney, why don't you own any? Bullion for Bitcoin:https://amagimetals.com      No Limithttps://bullionstar.com          200BTC ($3.6million)/dayhttps://apmex.com                $250k/orderhttps://providentmetals.com   $250k/orderhttps://suissegold.com            $100k/order, higher with prior approvalhttps://goldsilver.com              $100k/order, increasing soonhttps://jmbullion.com               $100k/orderhttps://silver.com                     $100k/orderhttps://veldtgold.com                $100k/orderhttps://moneymetals.com          $100k/dayhttps://schiffgold.comhttps://americanbullion.com (figures from 12.12.17, send message to [my username] at gmail dot com if an update is needed)

In reply to by nope-1004

overbet Gap Admirer Fri, 12/15/2017 - 17:56 Permalink

This is done as a kinda feel good bone tossed to the gold only crowd so they can feel like their only asset of choice is associated with something that actually increses in value. Face it nowadays the metal gold hasnt moved an inch in value. You see if we use definition number 4 BTC is true gold =  money; wealth; riches whereas the physical metal gold has become, well just a place to park fiat until you need it. There is no accumulation of money, wealth or riches. http://www.dictionary.com/browse/goldnoun1. a precious yellow metallic element, highly malleable and ductile, and not subject to oxidation or corrosion. Symbol: Au; atomic weight: 196.967; atomic number: 79; specific gravity: 19.3 at 20°C.2. a quantity of gold coins: to pay in gold.3. a monetary standard based on this metal; gold standard.4. money; wealth; riches.5. something likened to this metal in brightness, preciousness, superiority, etc.:a heart of gold.6. a bright, metallic yellow color, sometimes tending toward brown. 

In reply to by Gap Admirer

overbet SRV Fri, 12/15/2017 - 18:07 Permalink

Yes I hear it repeated daily on here. Fair warning acknowledged. One day gold will rallyOne day BTC will crashOne day the trap will be properly sprung.One day the world will have an apocolypse.One day I will be right, even though that day may come a century after I am dead and I will have been wrong every other day, but one day God damn it I will be proven right. When you think about it, that's actually a worse track record than a broken clock.

In reply to by SRV

Blue Vervain Fri, 12/15/2017 - 17:40 Permalink

Incidents where the company’s hardware was used to manufacture crypto-currency have been found. It could have a negative impact on the productivity of our processing capacity,

Strange thing to say. If someone was using a few of their pcs, and was caught, would that really impact their capacity?

beyondtheprogramming Fri, 12/15/2017 - 17:39 Permalink

When the rolling brownouts begin, now we'll know who to blame ... the measly lone-wolf lower-level employee who's mining to pay off a car loan, a second mortgage and that student loan for an SJW PhD.

Anteater beyondtheprogramming Fri, 12/15/2017 - 17:56 Permalink

The sole reason for Trump taking down the Internet is so they can divert the Internet's computing resources into Bit Mining,and charge you and me PPV to cover their Bit Mining expenses.Every time your Netflix stutters and stalls, some Bit Miner justgot their VapeCoin. Every time your Sprint phone drops a call,some Bit Miner just opened a new chain-wallet. By early 2020s,if this shit continues, Bit Mining will use the entire energy grid,and trojan up all the online computer capacity, including yours."Hello, you've reached Fidelity, all our computer ... s ... a ...redow ... n ... aaaaaaaaaaa ... t ... thhhhhh ... (lost connection).

In reply to by beyondtheprogramming

Atomizer Fri, 12/15/2017 - 17:42 Permalink

No shit schrock. We are going after the music pediphile next. Fuck you Susan of YouTube. It will make understanding within your guarded platform. Fucking kids and advertising them.  

Anteater Atomizer Fri, 12/15/2017 - 17:50 Permalink

"...could launch a decentralized digital currency akin to bitcoin - something that would allow anonymous transactions on top of a blockchain - to facilitate oil contracts and bypass the US financial system!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!"I will gladly trade my rubles today for your oil tomorrow!!Oh, but I insist, I will gladly trade my bolivars for your oil production equipment today!!Gentlemen, let's resolve to use my rials to facilitate this future trade!!Rubles!? Bolivars!? Rials!? Rials!? I don't want your stinking rials!!Bwaaa,ha,ha,ha,ha,ha,ha,ha.

In reply to by Atomizer

slightlyskeptical Fri, 12/15/2017 - 17:51 Permalink

The cryptos belong to the owners of the computers which mined them. Theft pure and simple. I know some of you could care less about stealing, cheating on taxes, etc. Eventually they catch up with you and then you get sleep next to someone you would rather not be sleeping next to.

itstippy Fri, 12/15/2017 - 17:56 Permalink

Years ago a freind of mine told me of troubles the University Of Wisconsin Madison was having with their computer system.  The servers were slow and no one could figure out why, since they should have had plenty of capacity.  So they got some IT grad students to take a look at it.  They discovered that the servers had been hijacked by someone who was using them to commercially host German pornographic movies worldwide.  UW-Madison was a global porn hub.  No wonder they had such bandwidth problems!  This was never reported in the newspapers.I'm not surprised people hijack computer systems to mine Bitcoins.  I'll bet university grad students are doing it as I type.

Atomizer Fri, 12/15/2017 - 18:00 Permalink

How does this benifet you. Google TV. Back in 1998, I couldn't watch TV under Islam discorse. The movie was chopped up. Fuck off. We can say anything we want. I obeyed to Islam rules visiting your country. You fucking instill your law in my country, dead man walking. I had to look at arrow pointed on ceiling and listen to your 5:30 am Pryor. Did I complain? Not at all. Don't fuck with our laws and sovereignty. Go back home. You will die in our country, trying to change it. When I visited your country, never tried to change it. 

Atomizer Fri, 12/15/2017 - 18:20 Permalink

If I fucked up in there country, would  be in jail. Treat theses illegal the same way in United States. Respect the law of our country. United States of America. I could of be canned in China. Never did anything bad. Understand? 

ft65 Fri, 12/15/2017 - 18:33 Permalink

Remember when Windows XP was first introduced I had a couple of spare servers doing nothing. Used them for several days, running brute-force Windows XP software key generators, just to see if they worked - which they did. Many a time I had powerful redundant computing capacity sitting idle just in case the ERP system fell over. Shame I didn't put it to good use. As for the bullshit that the global electrical grid will grind to a halt due to crypto mining, one word... GARBAGE!

Yellow_Snow Fri, 12/15/2017 - 18:35 Permalink

So now. some 'white collar nerd' is a Terrorist cus he used the companies computer to mine Monero...You can see where this is going...First it was a 'joke'...then it was  'it will never be adapted'...then it was 'the internet will go down'...then it was 'the EMP'...then it was the 'worst bubble ever'then it was the 'tulip mania'then it was the 'fraud, stupid'then it was 'only criminals use it'...then it was 'the hackers'...then it was 'the NSA is controlling it'...then it was 'the governments will regulate it to death'...then it was 'using all the earth's energy'...then it was 'transactions costs'then it was 'the IRS will git ya'...now it is 'government controls to stop the 'terrorists''   <-- YOU ARE HERE WHICH WILL FURTHER PUSH PRIVACY COINS TO THE MOON  !!!