Gairika Mitra
An employee of the Korea Food Research Institute (KFRI) was recently found to have secretly installed a cryptocurrency mining server within the institute, operating it for over a year in a secluded area, according to a report.
The report, released on August 26, came out as a result of an audit conducted by the National Research Council of Science and Technology (NST), detailing the unauthorized activities carried out by the employee. Referred to as Director A, the employee is now facing dismissal as a result of the findings.
In the report, it was revealed that Director A stole 12 high-end graphic processing units (GPUs) from the research institute. He then made use of these GPUs to build a cryptocurrency mining server, which he secretly operated in a warehouse located in the public relations office—a place that remained largely unvisited due to the COVID-19 pandemic.
Director A used the institute’s budget to purchase additional equipment necessary for the mining operation. He purchased air conditioners and facilitated the construction of separate electrical facilities to support the server’s operation. He first installed the mining server in April 2022 which remained undetected until September of the same year.
The Food Research Institute noticed discrepancies in the number of GPUs during an internal inventory check. This was followed by an internal investigation which revealed that an unauthorized external network was connected to the institute’s systems, bypassing the information protection protocols in place.
It appeared that Director A exploited a loophole that allowed external network access since cryptocurrency mining and electronic wallet management are prohibited under the institute’s security system.
According to the audit, Director A had impersonated another employee to purchase additional GPUs. He even accessed the employee’s account without authorization when the procurement process got delayed.
According to the NST Audit Committee, the estimated financial losses incurred by the Korea Food Research Institute from the illegal mining operation were valued at approximately 7.86 million won. The committee dismissed the employee and recommended that the institute recover these losses.
The report also highlighted that Director A had falsified attendance records and forged private documents, further justifying the call for his termination.
Furthermore, the audit recommended that the Food Research Institute review and strengthen its network separation operations to prevent similar security breaches in the future.
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Gairika holds positions in BTC. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
