Chinese school head sacked from job over cryptocurrency

Moral of the story: setting up a cryptocurrency mining operation in a school is not a good idea…

by Manoj Sharma for CNR

The principal of a Chinese school was sacked for using the school’s electricity and internet for mining cryptocurrencies, it’s been revealed.

The head of Puman Middle School in Chenzhou, China lost his job after he was found guilty of using the school’s internet and power to mine cryptocurrencies within the school premises. South China Morning Post reported the news of the incident at the end of last week.

According to the article, the mining operation was running for over a year, and has since then used electricity worth 14,714 Yuan (the equivalent of around US $2,120).

Lei Hua, the headteacher concerned, decided last year to mine Ethereum by market capitalization. He thus bought a mining rig for 10,000 Yuan (US$1,440) to mine cryptocurrencies but soon found out that he could not afford to pay for the power consumed by the machine. As such,  he shifted the equipment to one of the dormitories in the school and started the mining operation using the school’s electricity and internet.

Lei didn’t stop there. He subsequently added a further added seven more machines, which increased the power consumption to over 14,714 Yuan for a 12-month period ending July 2018. Motivated by his senior’s efforts, Wang Zhipeng, the deputy of Lei, bought a mining rig and, with Lei’s permission, set it up in the physics lab.

The massive power drain caused by all these mining machines began to strain the power cables, and its effect was seen in the internet speed of the school. Some teachers reported the continuous noise in classrooms at night. The electricity bill was at an all-time high. The resulting search led to the discovery of mining equipment.

As per the post, Lei was sacked while Wang was let off with a warning. The profits of the pair were, unsurprisingly, confiscated.

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