Baidu staffer jailed for mining US$14,000 worth of bitcoins with company servers

Cryptocurrency trading is banned in China, but not mining it

16 Mar, 2020 8:22am EDT

Mining cryptocurrencies involves solving complex math problems, which requires lots of computing power and electricity. But at its peak in late 2017, getting just one bitcoin could have netted you more than US$19,000. And it was around the time that one Baidu engineer decided to become a miner -- with the help of company servers.

abacus recommends
Baidu says autonomous driving tech could go several more years without profit
China's Netflix ordered to pay VIP subscriber US$210 after charging for advanced viewings
Baidu now has the largest autonomous driving test site in the world
Baidu bets big on live streaming as it searches for its own influencers
Film festival teams with streaming site to put movies online
Chinese search giant Baidu offers free robotaxi rides

According to a recently disclosed court document, An Bang was a senior engineer responsible for the maintenance of Baidu’s search engine. Between April and July of 2018, he downloaded crypto mining scripts -- software that directs servers to mine cryptocurrency for a website -- onto some 200 Baidu servers. The servers mined Monero -- a cryptocurrency that can be converted to bitcoins -- and eventually sold them for around 100,000 yuan (US$14,300).

Baidu called the police after it noticed unusual activity on a large number of servers. An was sentenced to three years in prison and fined 11,000 yuan (US$1,570) last month for illegally taking control of a computer system. 

While cryptocurrency trading is banned in China, the country decided late last year not to ban mining it.

GET OUR
BEST OF ABACUS NEWSLETTER
Email Address is not valid.
An Error Occurred. Please Try Again.
By registering you agree to our Privacy Policy
Thank you
You are now on the list.

more from abacus
China Internet Report 2019
TRENDING TOPICS
About Us Terms & Conditions Privacy Policy
rss