South Korean Food Agency Employee Charged with Crypto Mining at Work

A South Korean government-affiliated food agency employee has been charged with setting up a cryptocurrency mining server using stolen equipment from the workplace.

The incident was uncovered during an audit by the National Research Council of Science and Technology (NST). The accused employee, a director at the Korea Food Research Institute, reportedly stole 12 GPUs from the institute to create the mining server.

The Korea Food Research Institute. (Source: Korea Food Research Institute/YouTube/Screenshot)

Investigators claim that the director set up the mining server in a restricted area of the institute's public relations office, which had limited access due to the pandemic. The director is also accused of using the institute’s budget to purchase additional mining equipment, including air conditioning units and electrical facilities.

The NST believes the director initiated the mining operation in April 2022, and it remained undiscovered until September 2023.

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The director allegedly used a VPN to bypass the institute’s firewall, which blocked access to crypto-related websites and software. Additionally, the director is accused of impersonating a colleague to acquire another GPU for mining.

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Suspicion arose during an inventory check that revealed missing GPUs and an unauthorised external network connected to the system. The NST audit estimated the damage caused by the director’s actions at approximately 7.86 million won (around $5,866).

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Following the audit, the NST handed the case to local police in Wanju, North Jeolla Province. The director has been charged with theft and breach of trust-related offences. The audit committee has also recommended that the institute recover damages and dismiss the director.

The case highlights ongoing security concerns within government-affiliated institutions, as the NST urged the institute to re-examine its network operations and improve security measures.