cryptocurrency mining

Malware Botnets Hijacked Microsoft SQL Databases to Mine Cryptocurrency Causing Concern

Guardicore, a cloud security and data center firm, has issued a report showing how a malware botnet, tracked as Vollgar botnet, has been hijacking Microsoft SQL Server (MS-SQL) databases around the world and forcing them to mine the cryptocurrencies Vollar and Monero.

Botnet dangers and potential damage

The crypto-mining botnet has been used to create brute-force attacks against Microsoft SQL databases to take over admin accounts and then install crypto mining scripts on the underlying operating system. Since May 2018, the botnet has been targeting Windows machines running MS-SQL servers to deploy multiple backdoors, breach victim machines, and execute malicious modules like cryptominers and multifunctional remote access tools (RATs). The Vollgar botnet successfully manages to infect about 2000-3000 new machines each day. The malware has been targeting victims in various industries, including telecommunications, IT, higher education, aviation, and healthcare sectors.

According to the report, most-infected countries are India, Turkey, China, the United States, and South Korea, with the most attacking machines located in China.

Upon successful launching brute force attack into MS-SQL servers, the botnet operators conduct a range of configuration changes to the databases to enable future command execution. The malware has been compromising machines, repurposing to scan and infect new victims. Of course, victims are prone to get reinfected with the malicious malware. This occurs because MS-SQL administrators are not aware of how to remove all of the malware’s modules properly, thus leaving the door for the malware to reinstall itself.

Guardicore Lab has published a GitHub repository with scripts to help victimized MS-SQL administrators to detect backdoor accounts and files created by the malware on infected machines.

Concern for cryptojacking and blockchain security issues

A McAfee report in August 2019 indicated that cryptojacking is a critical area of concern. The growth of crypto prices influences the rising cases of scammers scrambling for other people’s computing power. Crypto-mining malware infects about 3000 systems per day and responsible for stealing private account information cached in the users’ computers. Crypto users are the most vulnerable to malware attacks.

Image via Shutterstock

Paraguay Senate Passes Bill to Regulate Crypto Mining and Trading

The Senate of Paraguay, a South American nation, on Thursday, approved a bill to regulate cryptocurrency mining and trading in the country.

The passage of the law is part of an approval made in December last year, but was modified in May by the Chambers of Deputies (the lower house of Paraguay’s bicameral legislature) and therefore returned to the upper chamber (the Senate) for further considerations.

Both chambers have now approved the bill and so it must be submitted to the executive branch, which has the power to approve or veto it.

The proposal modified by the Chamber of Deputies and accepted by the Senate designates the Ministry of Industry and Commerce as the main law enforcement authority to penalize individuals or firms conducting mining or offering crypto services without obtaining legal authorization.

The bill further delegated powers to the Secretariat for the Prevention of Money or Asset Laundering to be in charge of supervising the entire investment process conducted by crypto firms. Besides that, the bill designates The National Electricity Administration to be responsible for enabling the energy supply while the National Securities Commission is tasked with overseeing commercial activities involving digital assets. This involves licensing and overseeing crypto mining companies operating within the country. The proposed law does not make any cryptocurrencies legal tender.

The bill states that individual and corporate mining firms are expected to request for approval to use industrial electricity consumption and then apply for a business license. The proposed legislation also creates a registry for any individual or firm seeking to offer cryptocurrency trading or custody services for third parties.

The new legislation also expects crypto exchanges to register their businesses as virtual asset service providers with the anti-money-laundering agency of Paraguay.

Expanding Crypto Legal Framework

The latest Paraguay’s bill appears to build on previous legislations. In July last year, Paraguay became the second country to propose a bill to make Bitcoin legal tender after El Salvador announced the crypto as legal tender last June.

However, the bill was quite different from that of El Salvador. A leaked draft of Paraguay’s crypto bill showed that the country had no intention of making Bitcoin or any other cryptocurrency legal in the country.

Instead, the nation’s focus was on creating a regulatory framework, especially when it comes to taxation. The aim of the legislation was to create a legal certainty, financial and fiscal in the businesses derived from the production and trading of digital assets.

Unlike El Salvador, Paraguay has had a lot of the same concerns that some other nations have had with crypto entities — that of taxation. The nation wanted to ensure that crypto companies are brought under its tax regime and to have traceability for such transactions and investments.

Argo Mining Crypto Production Rose to 219 BTCs in July

Argo Blockchain plc, a publicly traded cryptocurrency mining firm based in the UK, on Friday, announced its operational update for July 2022.

During the month of July, Argo revealed that it mined 219 Bitcoins as compared to 179 BTCs in June 2022.

The company further said its mining revenue in July amounted to £3.89 million [$4.73 million] compared to June’s £3.38 million ($4.35 million).

As of 31 July 2022, Argo said it held 1295 Bitcoins, out of which BTC Equivalents were 227.

Mining Hardware Machines Update

During the month of July, Argo stated that it completed its machine swap of about 10,000 S19s Antminers, which were hosted with Core Scientific, and finalized its strategic pivot to a self-hosted business model.

As a result of the completion of its machine swap, Argo said it now expects to generate better performance from its mining machines and have greater control of operations, including operational expenses.

Apart from that, Argo mentioned that in July it faced operational challenges with its 17 series machines. The company, therefore, conducted a comprehensive review of its entire mining fleet, with a focus on its S17 and T17 miners (collectively, the “17 series machines”).

As a result, Argo identified that it was not the only miner affected by the hitches associated with its 17 series machines. There were also high failures among the 17 series machines in other crypto mining firms in the sector.

Despite Argo removing the non-operational 17 series machines, its total hashrate at the end of July was around 2.23EH/s. This figure took into account the company’s continued installation of the S19J Pros ordered from Bitmain and the completion of the Core machine swap.

Peter Wall, Argo’s CEO, talked about the development: “We would like to thank Core Scientific for acting as an invaluable and reliable business partner in this transition period which represents a crucial step for Argo’s future development. The completion of the S19 machine’s swap marks a further consolidation of our infrastructure, allowing us to retain further control of our operations and adjust them in accordance with our needs at any given time. While there have been some challenges in operating the 17 series machines, we are pleased with the ROI we have achieved on this portion of our mining infrastructure.”

Financing Deal

Moreover, during the month of July, Argo said it sold 887 Bitcoins at an average price of around $22,670. The firm said it used the proceeds to reduce obligations under a BTC-backed loan agreement with Galaxy Digital and to fund operating expenses and growth capital.

As of 31 July 2022, Argo mentioned it had an outstanding balance of $6.72 million under the BTC-backed loan, a huge reduction from the maximum outstanding balance of $50 million in Q2 2022.

Helios Power Activities

During the month of July, Argo’s electricity costs at its Helios facility in Texas continued to rise higher than anticipated in the past. Electricity costs have increased around the world, mainly because of higher natural gas prices stemming from the war in Ukraine, as well as increased demand for electric-powered air conditioning during an unusually hot and dry summer.

In the middle of July, Argo said ERCOT (The Electric Reliability Council of Texas, Inc) – a US organization that operates Texas’s electrical grid –issued a conservation alert urging all residential, commercial, and industrial electricity users to reduce electricity consumption during specific afternoon hours when electricity demands were at its highest.

As a result, Argo and major large-scale Bitcoin miners in Texas, proactively shut down their mining operations and reduced usage by over 1,000 MW, thereby reducing strain on the grid during peak demand.

WEF Promotes Eco-Friendly Crypto Mining Firm Crusoe Energy

The World Economic Forum (WEF) recently shared a video promoting the efforts of Crusoe Energy Systems, a Colorado-based cryptocurrency mining firm that has been recognized for its eco-friendly practices. The video focuses on Crusoe’s innovative approach to reducing flaring, a process where large amounts of gas are wasted during oil production or from decomposition.

In the video, Chase Lochmiller, CEO and co-founder of Crusoe, explained that the company builds and operates modular data centers that are co-located with waste energy sources to use wasted methane streams to generate power. This enables the production of ultra-low-cost computing infrastructure by utilizing stranded energy sources that would otherwise go unused.

Despite the prominent imagery of what appears to be cryptocurrency mining facilities presented throughout the video, it never directly addresses what is actually happening. However, several crypto industry figures, including MicroStrategy co-founder Michael Saylor, praised Crusoe’s efforts and recognized the environmental benefits of their approach to mining.

Kristine Cranley, a director at the advocacy group the Texas Blockchain Council, pointed out in a tweet that the video didn’t once mention “the b word”: Bitcoin. However, it’s worth noting that Crusoe Energy Systems did expand its Bitcoin mining assets through the acquisition of Great American Mining (GAM) in October 2022, adding over 10 megawatts to its mining output, along with approximately 4,000 application-specific integrated circuit (ASIC) crypto-mining rigs.

Crusoe Energy Systems’ innovative approach to cryptocurrency mining has not gone unnoticed, as they recently partnered with the government of Oman in June 2022. Oman exports 21% of its gas production and seeks zero gas flaring by 2030. Crusoe will open an office in Oman’s capital city of Muscat and install its equipment for capturing gas waste at well sites to use as computing power for crypto mining.

It’s worth noting that the WEF has previously expressed concerns about the environmental impact of Bitcoin’s current consensus mechanism and has advocated for changing its code to proof-of-stake. Some users have suggested that the WEF’s failure to directly mention cryptocurrency mining in the video is due to their previous stance on the issue.

Despite the lack of direct mention of cryptocurrency mining in the WEF video, Crusoe Energy Systems’ approach to mining is an excellent example of how technology can be utilized to reduce waste and promote sustainable practices. Their innovative use of waste energy sources to power their mining facilities is not only beneficial for the environment but also serves as a reminder that the crypto industry can play a significant role in promoting eco-friendly practices.

Crypto Miner HIVE Blockchain Rebrands to Drive AI Expansion

HIVE Blockchain Technologies Ltd. has declared its plan to strategically rebrand, including a transition to the new name “HIVE Digital Technologies Ltd.” This rebranding initiative is designed to mirror the company’s progression into the realm of high-performance computing (HPC) data centres, utilizing Nvidia’s superior Graphics Processing Unit (GPU) chips to tap into the burgeoning trend of widespread adoption in the field of Artificial Intelligence (AI).

Established in 2017, HIVE has been an innovative leader in the domain of cryptocurrency mining. The upcoming name change signifies a major strategic shift to exploit the capabilities of green energy data centres and GPU Cloud computing technology, an indispensable resource in the sphere of AI, machine learning, and sophisticated data analysis.

At present, the company’s common shares are traded on the TSX Venture Exchange (TSXV) and the Nasdaq Capital Market under the ticker “HIVE”. The company has confirmed that there will be no changes to its trading symbols nor will there be any consolidation of share capital associated with the name change. The implementation of the name change is anticipated around July 12, 2023, pending receipt of all necessary regulatory approvals.

The rebranding will not impact the company’s share or warrant structure or the rights of its security holders. Existing security holders are not required to take any further action. All current share certificates or warrant certificates will continue to represent the shares or warrants of HIVE Digital Technologies Ltd. without the need for any additional action by holders post the name change.

In a separate announcement, the company has rectified an earlier understatement of the number of Bitcoin equivalent mined during the year by 792. The accurate figures for Bitcoin equivalent should have been 4,295, not the previously reported 3,503.

Furthermore, the company disclosed that its Board of Directors has sanctioned the grant of 620,000 incentive stock options, which can be exercised into an equivalent number of the company’s common shares at a price of C$6.86 per share for a duration of five years. These grants, made to the company’s employees, officers, and consultants, are subject to specific vesting requirements.

HIVE Blockchain Technologies Ltd. made its public debut in 2017 as the inaugural cryptocurrency mining company to be listed for trading on the TSX Venture Exchange, with a strong emphasis on sustainable green energy. The company operates advanced, green energy-powered data centre facilities in Canada, Sweden, and Iceland, where it harnesses green energy to mine digital assets like Bitcoin on the cloud.

Hive Digital Technologies Bolsters Global Reach with Swedish Data Center Acquisition

Hive Digital Technologies, a prominent player in cryptocurrency mining, has recently announced a significant expansion of its global operations. The company’s latest move involves the acquisition of a new property and data center in Boden, Sweden. This acquisition is set to enhance Hive’s Bitcoin production capabilities significantly.

The newly acquired property, previously part of the European Union’s Horizon 2020 project, marks a substantial step in Hive’s expansion strategy. The company entered a property transfer agreement with Turis AB, underlining its commitment to fortify its presence in the cryptocurrency mining landscape. This strategic location in Sweden, positioned near Hive’s existing data center, is poised to become a key asset in the company’s portfolio.

Consistent with Hive’s dedication to environmental sustainability, the new data center in Sweden will adhere to the company’s green energy practices. Johanna Thornblad, Hive’s country president for Sweden, highlighted this expansion as a testament to Hive’s commitment to environmental responsibility and energy efficiency. The facility is expected to house the next generation of Application-Specific Integrated Circuit (ASIC) servers, a crucial component in enhancing Bitcoin production.

In a strategic shift earlier this year, Hive Digital Technologies rebranded itself by dropping the term “blockchain” from its official name. This move signifies the company’s evolving focus towards financial opportunities in artificial intelligence (AI), cloud computing, and graphics processing units (GPUs). Despite the emphasis on AI, Hive remains deeply involved in Bitcoin and cryptocurrency mining, with its leadership affirming the synergistic coexistence of blockchain and AI as pillars of Web3.

Hive Digital Technologies’ acquisition of the data center in Boden, Sweden, represents a significant milestone in its global expansion strategy. By leveraging its commitment to green energy and innovative practices, Hive is poised to enhance its Bitcoin production while contributing to the sustainable growth of the cryptocurrency industry.

The acquisition aligns with Hive’s broader industry initiatives. Earlier, Hive participated in launching the Digital Power Network (DPN), which underscores the importance of proof-of-work (PoW) mining in the cryptocurrency ecosystem. Furthermore, the company plans to use its 38,000 Nvidia GPUs to offer more efficient alternatives for small and medium-sized businesses, highlighting its diversification and adaptability in the evolving digital landscape.

Kyrgyzstan's Rising Tide in Crypto Mining Tax Revenue

There has been significant progress made in the cryptocurrency mining business in Kyrgyzstan, a nation that has abundant hydroelectric resources. A significant amount of 78.6 million soms, which is equivalent to around $883,000, was collected by the government of the country from cryptocurrency miners during the first eleven months of the year 2023. Compared to the 11.1 million soms (equivalent to $133,200) that were collected over the same time period in 2022, this amount represents a substantial rise. There was a fluctuation in tax receipts throughout the year 2023, with the lowest amount being 738,000 soms ($8,284) in February and the highest amount reaching 11.6 million soms ($130,212) in August.

One of the most important aspects of this expansion is Kyrgyzstan’s immense water resources, which include glaciers, lakes at high altitudes, and rivers that stretch for more than 35,000 kilometers. A significant portion of these resources are not being exploited to their full potential, since crypto miners mostly depend on hydropower for their operations. In point of fact, the majority of small hydroelectric power station owners in Kyrgyzstan are connected to cryptocurrency mining farms in the country. This synergy between natural resources and technology innovation is establishing Kyrgyzstan as an emerging hotspot in the world of cryptocurrency mining, comparable to nations such as Costa Rica and Paraguay who are also in the process of developing their mining industry.

In July of 2023, Kyrgyz President Sadyr Japarov gave his approval for the building of a cryptocurrency mining facility at the Kambar-Ata-2 Hydro Power Plant. This development contributed to the momentum that was already there. Through the implementation of this plan, the government demonstrates its dedication to maximizing the economic potential of its natural resources. On the other hand, it is important to remember that cryptocurrency miners in Kyrgyzstan are charged a rate that is five times more than the general population for the use of power.

In spite of the optimistic income forecasts, the production of cryptocurrencies in Kyrgyzstan encountered difficulties in 2023. These difficulties included low dam fill levels and constraints on electricity distribution as a result of contracts with neighboring nations. Because of these concerns, miners were occasionally compelled to import electricity, which brought to light the challenges that still need to be addressed with regard to infrastructure. Nevertheless, by the beginning of October 2023, the sector had used a substantial 17 million kWh of power.

British Columbia Court Upholds Government's Temporary Ban on Cryptocurrency Mining Electricity Supply

On February 2, 2024, the British Columbia Supreme Court ruled in favor of the Lieutenant Governor in Council, upholding an Order in Council (OIC) that temporarily suspended BC Hydro’s obligation to supply electricity to new cryptocurrency mining operations for 18 months. The ruling, delivered by Justice Tammen, dismissed the petition by Conifex Timber Inc., a forestry company aiming to diversify into high-performance computing data centers primarily for cryptocurrency mining.

Background of the Case

The controversy began with the OIC issued on December 21, 2022, directing the British Columbia Utilities Commission (BCUC) to relieve BC Hydro from supplying service to new cryptocurrency mining projects, affecting two of Conifex’s data centre projects. The government’s directive was rooted in concerns over the massive electricity demand from cryptocurrency mining operations and its potential impact on the province’s energy resources and climate goals.

Key Findings of the Court

The court found that the OIC was a reasonable exercise of the Lieutenant Governor in Council’s authority under the Utilities Commission Act (UCA). It determined that the directive did not constitute undue discrimination against cryptocurrency miners, as it was justified on a cost-of-service basis due to the unique and substantial electricity consumption characteristics of cryptocurrency mining operations.

Justice Tammen also addressed the procedural fairness argument, highlighting that the OIC’s purpose was to temporarily pause the electricity supply to large cryptocurrency projects to allow for consultation and policy development concerning the industry’s energy consumption.

Implications of the Decision

This decision has significant implications for the cryptocurrency mining industry in British Columbia, signaling the government’s authority to regulate utility services based on broader policy considerations, including environmental sustainability and energy conservation. It also underscores the challenges faced by the cryptocurrency mining sector, which is known for its intensive energy use, in regions prioritizing clean energy transitions and climate change initiatives.

The ruling may prompt other jurisdictions to consider similar measures to manage the energy demands of high-consumption industries like cryptocurrency mining, especially in areas where energy resources are strained or where there’s a strong commitment to environmental goals.

Future Considerations

The court’s decision highlights the need for industries, particularly those with significant energy demands, to align their operations with regional energy policies and environmental objectives. It also emphasizes the importance of government and regulatory bodies in balancing industrial demands with sustainability goals and the public interest.

As the conversation around cryptocurrency mining and energy consumption evolves, stakeholders across the spectrum — from industry participants to policymakers — will need to navigate the complex interplay between innovation, economic development, and environmental stewardship.