A South Korean government-affiliated food agency employee faces charges for setting up and operating a cryptocurrency mining server at work. According to Dong-A Ilbo, the Korea Food Research Institute (KFRI) employee, who has not been named, was caught during an audit by the National Research Council of Science and Technology (NST).
Crypto Mining Setup Involved Stolen GPUs
NST investigators revealed that the employee, a director at the institute, had illegally taken 12 GPUs from the organization. These stolen units were then used to build a makeshift crypto mining server. The specific cryptocurrency mined has not been disclosed.
The NST has referred the case to local police in Wanju, North Jeolla Province. The director now faces charges of theft and breach of trust. Investigators found that the mining operation was set up in a warehouse within the institute’s public relations office, a restricted area due to COVID-19.
Misuse of Institute’s Budget and Resources
The director allegedly misused the institute’s budget to purchase additional mining equipment, including air conditioning units and separate electrical facilities. The mining server, which was set up in April 2022, continued to operate until its discovery in September 2023.
Security Breach and Forgery
The director circumvented the institute’s firewall, which blocks access to crypto mining and wallet-related sites, by using a VPN. Additionally, the director is accused of impersonating a colleague to acquire another GPU for mining.
The issue came to light during an inventory check that revealed missing GPUs and an unauthorized external network connection. The NST audit estimates the financial damage at approximately 7.86 million won ($5,866) and has recommended the institute recover these losses and dismiss the director.
The audit also uncovered falsified attendance records and forged documents. The NST has suggested that the KFRI reassess its network security measures to prevent future breaches.
This incident follows a 2021 case where a government employee was found mining Ethereum beneath a prominent opera house in Seoul.
