A former contractor for the Australian government used supercomputers to mine crypto that caused $76,000 AUD in damages

By Selena On Sep 20, 2020

According to a report from the Australian Federal Police (AFP), a former contractor for an Australian government research agency, Jonathan Khoo, a 34-year old from the north shore of Sydney, was convicted for using supercomputers to mine crypto in 2018.

A former contractor for the Australian government used research supercomputers to mine crypto in 2018

Reportedly, Khoo has used valuable computing resources at the Commonwealth Scientific and Industrial Research Organization to mine Ethereum and Monero, a privacy-focused cryptocurrency. He avoided a maximum penalty of 10 years in prison; instead, the court fined him 300 hours of community service.

Khoo’s January 2018 mining operation returned around AU $ 9,400 ($ 6,850) while leaving CSIRO at least A $ 76,000 ($ 55,400) loss due to lost productivity and wrong structural picture.

AFP chief of cybercrime operations Chris Goldsmid said:

“Khoo diverted these supercomputer resources away from performing significant scientific research for the nation, including Pulsar Data Array Analysis, medical research, and climate modeling work to measure world to the environment from climate change.”

Khoo pleaded guilty to illegally modifying the data to cause decline before the Downing Center Local Court in February 2020. The charges had a maximum sentence of up to 10 years in prison, but the penalty was relatively mild. Khoo’s 300 hours of community service were due to Khoo’s remorse and partnering with law enforcement after searching his home in March 2018.

Goldsmid said:

“The consequences are clear – this was a misuse of Australian taxpayers’ trust by a Commonwealth employee, motivated by personal gain and greed.”

Presiding Judge Erin Kennedy noted:

“The significance of having a government research organization targeted by a rogue contractor, implying greater harm could have befallen the public resources if Khoo or another actor had more malicious intentions.”

Khoo’s mining operations last more than a month, and the mining profits – less than 10,000 AUD (7,000 USD) in total – don’t seem to deserve the penalty. As of his 300 hours of community service, Khoo’s crypto mining journey has earned him a $ 23 hourly salary.

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