Crypto

Former Northland man sentenced for ‘cryptojacking’ scheme

Published

4 months ago

October 21, 2025

Former Northland man sentenced for ‘cryptojacking’ scheme

ST. PAUL — A former Northland resident will repay more than $45,000 to his former employer for misusing their computer systems to mine cryptocurrency for personal gain.

Joshua Paul Armbrust, 45, was sentenced Tuesday by U.S. District Judge Jerry Blackwell to three years of probation following his

April guilty plea to a felony count of computer fraud.

Armbrust, according to court documents, continued to use the resources of Digital River, a Minnetonka-based global e-commerce and payment processing company, for more than a year after he resigned in February 2020.

Through the scheme known as “cryptojacking,” he took advantage of the now-defunct company’s computing power to obtain and liquidate $5,895 worth of Ethereum — while forcing Digital River to absorb $45,270 worth of web service fees.

“The defendant’s conduct strikes at the core of digital trust and security in the modern economy,” Assistant U.S. Attorney Bradley Endicott told the court. “Companies rely on former employees to act ethically, even after separation, and to respect corporate systems and data.

“Unauthorized access to corporate cloud infrastructure not only creates financial harm, as in this case, but also exposes sensitive systems to potential compromise and opens the door to more severe cyber threats.”

Armbrust was

living in Orr when he was indicted by a federal grand jury last November.

Records indicate he has since relocated to St. Paul and is working for an insurance company.

Endicott said the scheme came to light only because Digital River, which went out of business in January, conducted an internal investigation and discovered the unauthorized activity, which was then traced back to Armbrust’s IP address.

Defense attorney William Mauzy told the court Armbrust had been given a code to access Amazon Web Services, which hosted programs that Digital River was using to mine cryptocurrency.

After leaving the job, the defendant used that same code to build a program to generate cryptocurrency for himself — leveraging the services between 6 p.m. and 7 a.m. daily, and then transferring the Ethereum into a digital wallet he controlled.

Endicott said it was “not a momentary lapse in judgment” but a “calculated and covert misuse of enterprise-level computing resources for private enrichment.” It “resulted in real monetary losses, investigative costs and operational disruption to a private company.”

“The defendant is clearly a capable and technically skilled individual,” the prosecutor said. “But instead of using those talents for constructive and lawful purposes, he chose to exploit his former employer for personal gain. It is disappointing that someone with this ability used his skills to steal.”

Mauzy, though, noted the scheme occurred “during a time of extreme financial need and considerable emotional distress,” as Armbrust was caring for his mother, who was in deteriorating health and has since died.

The attorney said the evidence clearly shows his client was not a “malicious hacker” who set out to disable his former employer’s computer systems. He made no efforts to cover his tracks and has accepted responsibility for the financial losses.

“Armbrust’s conduct, while criminal, was an act of desperation and despair,” Mauzy wrote, “not a crime of greed.”

The probationary term was expected, as both sides jointly recommended it under the plea agreement. Armbrust has no prior criminal history.

The FBI handled the investigation.

Tom Olsen covers crime and courts and the 8th Congressional District for the Duluth News Tribune since 2013. He is a graduate of the University of Minnesota Duluth and a lifelong resident of the city. Readers can contact Olsen at 218-723-5333 or tolsen@duluthnews.com.

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Crypto

Nancy Guthrie disappearance highlights cryptocurrency’s role in criminal activity

Published

56 minutes ago

February 11, 2026

Press Room

Nancy Guthrie disappearance highlights cryptocurrency’s role in criminal activity

PHOENIX (AZFamily) — The high-profile disappearance of Nancy Guthrie has brought new attention to the world of cryptocurrency, with multiple ransom notes sent to media outlets demanding payment in Bitcoin in exchange for Nancy Guthrie or her whereabouts.

What is cryptocurrency?

Cryptocurrency is digital money that only exists online. It operates on a network or blockchain rather than being controlled by a bank. It allows person-to-person transactions and uses a public ledger to record transactions. Crypto is most frequently used for online payments or investments.

Crypto expert Robert Hockensmith said every transaction is tracked and verified.

“Any time you buy it, any time you sell it, any time you use it to buy a product or service, any time you connect it or take it to another place, it is identified as you touching it. That’s how it works,” said Hockensmith, who works with AZ Money Guy.

Why criminals use cryptocurrency

Despite the tracking capabilities, criminals use crypto because it’s not that simple to trace. A cybersecurity expert said a lot of criminals have found creative ways to avoid being traced.

They’ll use multiple crypto wallets and addresses to obscure their identity. Funds can be transferred globally almost instantly, and if some IP addresses are hidden, they can be harder to locate. Once a transaction is confirmed, it’s extremely difficult to reverse.

“If you think about, for example, ID theft, cybercriminals might literally steal someone’s identity and that might include their access to something like Coinbase and then use that victim’s Coinbase to receive stolen funds and move it somewhere else, same way they used to do it with wire transfers,” said Eric Foster, cybersecurity and crypto expert and CEO of Tenex.AI.

Another crypto expert said criminals will keep moving their crypto over and over again, making it harder and harder to trace. He calls crypto the modern way of transporting large sums of money and said it has become the currency of choice for criminals.

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Crypto

White House Convenes Crypto Leaders, Banks, Policymakers for Market Structure Talks

Published

13 hours ago

February 11, 2026

Press Room

Bipartisan momentum is building behind U.S. crypto legislation as the White House intensifies talks with industry, banks, and lawmakers, signaling renewed efforts to break a regulatory stalemate and advance long-awaited market structure rules.

Crypto

Perry and Jackson police partner to investigate cryptocurrency crimes

Published

1 day ago

February 10, 2026

Press Room

Perry and Jackson police partner to investigate cryptocurrency crimes

Perry and Jackson township police are partnering to investigate crimes related to cryptocurrency. The cooperation has already resulted in the recovery of stolen assets, police say.

Perry Township Police Chief Bryan D. Taylor announced Feb. 10 that as part of the collaboration, Jackson Township police will provide certified cryptocurrency investigative support for cases originating in Perry.

He wrote in a social media post that the partnership allows Perry police to leverage specialized expertise in an evolving area of financial crime, ensuring more thorough investigations and improved outcomes for victims.

“This partnership has already produced positive results,” Taylor wrote. “In a recent case originating in Perry Township, investigative efforts led by Jackson Township Police Department resulted in the successful recovery of cryptocurrency funds, which were returned to the victim. Recovering stolen digital assets is often complex and challenging, making this outcome especially meaningful for the victim and the community.”

He extended appreciation to the Jackson Township Police Department and Jackson Detective Jeffrey Aynes “for their professionalism, technical expertise and dedication throughout the investigation. Their commitment to collaborative law enforcement, and victim-focused outcomes exemplifies the strength of regional partnerships.

“Cryptocurrency crimes present unique challenges that require specialized training and expertise,” he said. “This partnership strengthens our ability to pursue these cases effectively and reinforces our shared commitment to serving and protecting our communities.”

He wrote that the Perry Township Police Department remains committed to adapting to emerging crime trends, using partnerships and pursuing justice for victims of financial crimes.