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Louisiana Attorney General Probes Own IT Dept Over Bitcoin Mining Allegations

Louisiana attorney general probes own it dept over bitcoin mining allegations

Louisiana Attorney General Probes Own IT Dept Over Bitcoin Mining Allegations

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The Louisiana Attorney General, Jeff Landry, has opened a criminal investigation into his own office’s information technology division, including its recently ousted director, over allegations that former employees used state resources to mine bitcoin.

While half a dozen IT employees were fired in September, Landry has until now refused to acknowledge the inquiry.

State And Federal Inquiries

The state bureau of investigation questioned employees after investigators found mining hardware, according to sources. No charges have yet been filed, according to The Advocate.

One law enforcement official, speaking anonymously, said computer systems could have been compromised. The FBI has questioned the IT section’s former director, sources said.

The FBI reportedly investigated claims that IT staffers exchanged emails about a “logic bomb,” a code that sets off malicious computer activity following a certain period of time. Two former employees told The Advocate that state investigators found those emails. For former IT director reportedly told investigators he had no knowledge of such a “bomb.”

The FBI chose not to comment on the probe.

Fired Employees Claim Innocence

Three of the terminated employees, speaking on condition of anonymity, told The Advocate their firings were due to a misunderstanding by the attorney general’s office and denied any wrongdoing.

One former employee said she was fired around the time the suspicious equipment was discovered in mid-September.

Landry declined to comment on the investigation.

Also read: Arkansas sheriff mines bitcoin in cybercrime prevention initiative

Records Verified Firings

The attorney general’s office in December released personnel records that revealed five IT division employees were fired in September. The records, released in response to a public records request, included no mention of the bitcoin mining investigation.

The terminated employees included a systems administrator, a help desk manager, a human resources employee and a litigation support manager. The IT divisions director resigned on Sept. 1, but was fired less than two weeks after his resignation was effective, the records indicated.

At least two of those fired are privately involved in bitcoin mining. One fired employee said they could not have used agency computers to mine cryptocurrency since the machines lacked the capability, and that such activity would have been detected easily due to the high amount of electricity required.

Featured image from Shutterstock.

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Published at Sat, 03 Mar 2018 13:05:37 +0000

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Bitcoin’s $500 Price Drop Sets Community Abuzz

bitcoin prices dropped yesterday from $2800 down to $2460, sparking concern and speculation across the cryptocurrency community.


The large drop in value has come alongside the largest bitcoin Bull run in the currencies history, it caused panicked posts on social media with one Reddit user posting;

“What the hell happened with the drop from 2800 to 2460?!!!!!” – TakinBackMyLove, a distressed Reddit user.

Many other new bitcoin users, drawn to cryptocurrency investment by the current upward cycle of the market, also voiced their concerns while bitcoin veterans remained calm, having seen this all before, and much worse.

Welcome to bitcoin

The drop follows three straight days of price increases for bitcoin as the price climbed from $2000 to $2800, which was an all-time high per coin. In financial markets, it is not uncommon to see corrections like this after relatively large gains over a short period of time, which really does bring a touch of sanity to a frenzied market. That the decrease was not more substantial, given what has overall been a very large rise, should give investors comfort.

Bitcoin Historical Prices

Past Volatility

bitcoin has been historically famous for its massive volatility, with its price declining by several orders of magnitude in just the space of minutes. In August 2011 the price dropped by almost 50% from $13.50 down to just $7 in the period of 7 hours. However, the coin is also famous for its sudden gains too, as bitcoin prices began hitting $80 dollars.

Bitcoin price drop August 2013

Another example is the 2013 crash, often attributed to the downfall of the infamous Japanese based exchange, Mt. Gox, when the site went down it took many Investors coins with it. bitcoin took its time recovering, and cryptocurrency as a whole entered a bear market.  bitcoin has made slow and steady gains since 2015, however, it is only since March that the gains have started to rise at a disproportionately increased rate.

It comes as no surprise, that in the wake of such massive gains, that bitcoin fever seems to have struck again.

Still Bullish

With daily candles mainly Green, all signs still point to the coin remaining Bullish and, at the current time of this writing, it has since started climbing back towards $2,550.

Bitcoin Still Bullish

What do you think of bitcoin’s volatile history? Do you think prices will continue to climb or is it a bubble that is about to pop? Let us know in the comments below!


Images courtesy of BitcoinCharts, AdobeStock

The post Bitcoin’s $500 Price Drop Sets Community Abuzz appeared first on Bitcoinist.com.

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