The headmaster of a school from Hunan province was fired after it was discovered that he had a secret stash of machines for mining crypto-currency that were connected to the school’s electricity supply. Local media agencies reported that the incident came to light when the staff of the school was alerted by the sounds of suspicious whirring noises that were heard from his office at all hours. The discovery of mining machines helped solved the mystery and investigators reported that the man was mining crypto-currency called Ethereum and had racked up the school’s electricity bill to 14700 yuan or £ 1600. There had been complaints about excessive electricity bills in the past few months to headmaster whose name is Lei Hua but he dismissed it saying that it could be due to heating and cooling devices in the school.
For mining crypto-currencies computers have to be connected to specialized mining machines to the currency network and when computing power is provided for validating transactions the owners of these machines are gifted with freshly generated coins making it a very rewarding exercise specifically when it is done on a large scale like the one being done by Mr. Lei Hua. He had installed 8 mining machines to the school’s computer room in Hunan between 2017 and 2018.
He confessed to have spent 10,000 yuan after installing one of these machines in his residence, but when he saw the large amounts of electricity consumed by the machine he made the decision to move it to the school. A deputy headmaster of the school also got involved in it and invested in the ninth machine that was also fixed to school computers. Due to this mining activity the school’s computer network became overloaded and interfered with regular teaching activities. While the headmaster was dismissed immediately his deputy was let off with a warning. The money made through mining activity was claimed by local authorities.