A 44-year-old man from Orr, Minnesota, named Joshua Paul Armbrust, has pleaded guilty to computer fraud for running a “cryptojacking” scheme that cost his former employer, Digital River, over $45,000. While he was employed at the e-commerce company until February 2020, Armbrust continued to exploit their resources for personal gain until May 2021. He accessed Digital River’s Amazon Web Services account without permission to mine Ethereum, transferring the profits to his own Coinbase accounts. This unauthorized activity can slow down systems and increase energy bills. Although he faces a maximum of five years in prison, sentencing has not yet been scheduled. Digital River recently announced layoffs affecting 122 employees.
ST. PAUL — In a significant legal development, a 44-year-old man from northern Minnesota, Joshua Paul Armbrust, has pleaded guilty to a “cryptojacking” scheme that cost his former employer, Digital River, over $45,000. This incident, revealed in U.S. District Court, underscores the growing threat of cybercrime in the digital age.
Armbrust was employed by Digital River, a global e-commerce and payment processing company based in Minnetonka, until he suddenly resigned in February 2020. However, even after his departure, he continued to exploit the company’s resources unlawfully for more than a year. Cryptojacking, the method he used, involves unauthorized access to another’s computing resources for mining cryptocurrency, such as Bitcoin or Ethereum. This fraudulent activity not only hampers system performance but also increases energy consumption, leading to hefty operational costs.
According to court documents, Armbrust remotely accessed Digital River’s Amazon Web Services account multiple times between December 2020 and May 2021 to mine Ethereum for his financial gain. He redirected the mined cryptocurrency into a digital wallet, transferring the proceeds to accounts registered solely in his name. Prosecutors indicated that he managed to liquidate the mined Ethereum, amassing over $7,000, which he then funneled into his bank account.
Armbrust was indicted by a federal grand jury last October and briefly jailed during an investigation by the FBI. He has since been released under supervision while awaiting sentencing, which has not yet been scheduled. The charge he faces could result in a maximum prison sentence of five years.
Digital River, established in 1994, recently announced plans to shut down and lay off 122 employees at its Minnesota headquarters, raising concerns over the impact of cybercrimes like cryptojacking within the business landscape.
This case serves as a crucial reminder of the vulnerabilities faced by companies in the digital realm, highlighting the necessity for robust cybersecurity measures to protect resources from unauthorized use.
Tags: cryptojacking, cybercrime, Digital River, Joshua Armbrust, Minnesota news, cryptocurrency mining, U.S. District Court news
What is “cryptojacking”?
Cryptojacking is when someone secretly uses another person’s computer or device to mine cryptocurrency without permission. It slows down the device and can cause other problems.
Who was involved in the Duluth case?
An individual from Duluth pleaded guilty to running a cryptojacking scheme. This person illegally accessed other people’s computers to mine cryptocurrency for personal gain.
What are the consequences of being guilty in a cryptojacking case?
If found guilty, the person could face fines, imprisonment, or both. The exact punishment can vary based on the severity and impact of the crime.
How does cryptojacking affect victims?
Victims may experience slower computers, increased electricity bills, and even damage to their devices. It can also lead to a loss of sensitive information if the hacker tries to access personal data.
What can people do to protect themselves from cryptojacking?
To protect against cryptojacking, people should regularly update their software, run antivirus programs, and avoid clicking on unknown links or downloading suspicious files.
