Bitcoin Mine Employee Disappears: Accused of Theft of 55 BTC and $160,000 in Equipment

bitcoin crime

Last Updated on

NEW YORK (InsideBitcoins) — A vice president of mining operations for a Tampa, Florida firm is accused of bilking 55 bitcoins from investors on the peer-to-peer digital currency lending network BTCJam — as well as making off with thousands of dollars in bitcoin mining equipment from his now former employer.

“It has recently come to our attention that Jonathan Simms is suspected of walking away with as many as 55 bitcoin from independent investors on the website BTCJam,” reads a statement on the Digital Mining Investments (DMI) website, where Simms was employed. “[We] hired Jonathan as VP of Mining Operations but was not aware of his other outside entrepreneurial endeavors.”

The company says it has “cut all ties” with Simms.

“We are conducting our own independent investigation” said Dave Pate, a co-founder of DMI. “There is no immediate threat to any of our mining clients at this time. Those accounts are secured with separate controls to prevent against situations like this. We have to go back through all of the systems Jonathan set up for us and make sure there are no other discrepancies.”

Simms allegedly borrowed and is past due on a loan totaling 55 bitcoins from BTCJam users, as well as being a suspect in the removal of some $160,000 in equipment from DMI.

“Our investigation is specifically looking to uncover the cause of missing mining parts and equipment, diverted hashing power and other possible frauds perpetrated over the recent weeks at our Tampa data center,” the DMI statement continued. “We apologize to anyone that might have been caught up in this unfortunate series of events and we look forward to assisting the authorities in bringing anyone involved to justice.”

Remember, all trading carries risk. Views expressed are those of the writers only. Past performance is no guarantee of future results. The opinions expressed in this Site do not constitute investment advice and independent financial advice should be sought where appropriate. This website is free for you to use but we may receive commission from the companies we feature on this site.

About Inside Bitcoins