Summary:
Joshua Paul Armbrust, 44, indicted for an illegal cryptojacking scheme.
Allegedly accessed Digital River's systems after resigning to mine ethereum.
Cryptojacking uses unauthorized computing resources to mine cryptocurrency.
Armbrust reportedly mined over $45,000 worth of ethereum using company resources.
Charged with computer fraud, facing prosecution by the FBI.
A Shocking Case of Cryptojacking
MINNEAPOLIS — A northern Minnesota man has been indicted for an illegal cryptojacking scheme that cost his former employer dearly.
Court documents allege that in February 2020, Joshua Paul Armbrust, 44, of Orr, resigned from his job at Digital River, a Minnetonka-based global e-commerce and payment processing company.
After his departure, between December 2020 and May 2021, Armbrust allegedly engaged in a cryptojacking scheme, using accounts that belonged to his former employer.
What is Cryptojacking?
Cryptojacking is a form of cybercrime where an unauthorized party uses someone else’s computing resources to mine cryptocurrency, such as bitcoin or ethereum, by accessing the victim’s hardware. This unauthorized use can reduce system performance and drive up energy consumption, resulting in significantly higher operating costs.
The Allegations Against Armbrust
Armbrust is accused of remotely accessing the company’s Amazon Web Services account on multiple occasions without authorization and using Amazon Web Services computers to mine ethereum valued at over $45,000 for his former employer. The mined ethereum was then allegedly directed into a digital wallet and subsequently transferred to two Coinbase accounts registered solely in Armbrust’s name.
Armbrust reportedly liquidated the mined ethereum, totaling over $7,000, and transferred the proceeds to his bank account.
Legal Proceedings
The indictment charges Armbrust with one count of computer fraud. He made his initial appearance Friday in U.S. District Court in St. Paul, with Magistrate Judge John Docherty granting supervised release under a personal recognizance bond.
This case is the result of an investigation conducted by the FBI. Assistant U.S. Attorney Bradley M. Endicott is prosecuting the case.
This story was updated at 4 p.m. Nov. 4 with additional information from Armbrust's court appearance. It was originally posted at 1:46 p.m. Nov. 4.
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