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Qiwi Employee Used Company Machines To Mine 500,000 Bitcoin And Lost It All

Qiwi Employee Used Company Machines To Mine 500,000 Bitcoin And Lost It All

The CEO and majority shareholder of Qiwi- a Russian e-payment firm, Sergey Solonin, revealed that a company employee had mined 500,000 bitcoins in 2011 using his hardware without his knowledge. Solonini told the story while addressing students at the Moscow Advanced Communication School last week on  Wednesday.

According to reports, Solonin discovered that one of his developers was using the company’s hardware to mine bitcoin when the machines were not in use. He took advantage of the large processing power to mine bitcoins that amounted to $5 million (at the time) and worth $4 billion today. The developer managed to mine bitcoin unnoticed for a period of three months. This was more than what the company was making. The developer quit his job when he was asked to hand in the money he had taken from the company. The unnamed developer later lost all the 500,000 bitcoin to a currently failed cryptocurrency exchange.

Cryptocurrency as a Gold Mine

Solonin told the students that the incident introduced him to a “gold mine” especially at a time when his company was really struggling. It introduced him to blockchain and its technology. After the developer left, Solonin sought to continue the mining operations as it had more profits than their original operation. He told his employees to continue mining the bitcoin. However, after a few months it became difficult to continue with the mining process as the hardware could no longer handle the tasks. The machines processing power was not enough to support the operation

This, however, did not stop him from investing in the industry. He hired experts in computer chips and instructed them to speed up the mining process.  Currently, the company sells mining equipment to people in Russia and other parts of the world.   Qiwi’s operation majors on artificial intelligence and blockchain. Solonin believes that blockchain will eventually integrate computer systems in the near future.

Many are joining the cryptocurrency industry as it has provided a better solution than most industries. A Farmer form Kolionovos, Mikhail Shlyapnikov joined the cryptocurrency industry after the bank charged him high interest on a loan he needed for farming. To him, paying 12% on the loan would have subjected him to financial slavery. He decided to decline the loan and look for a better solution. He first ventured into paper Kolions in 2014. The Kolions were later banned in 2015 by a Russian court forcing him to try out cryptocurrencies. He started working on cryptocurrency version of the Kolions and in April last year, Shlyapnikov raised $500, 000 in an initial coin offer. His cryptocurrency, the Kolion, helps farmers and construction workers in the region.