The state of New Jersey recently announced a $1 million settlement with E-Sports Entertainment, LLC over allegations that the company installed malware on its customers’ computers. The Attorney General claimed that E-Sports’ software allowed the company to use its customer’s computers to mine for Bitcoins without the user’s knowledge, generating thousands of dollars in Bitcoin value for E-Sports (and no value for the users) after numerous reports of unusually high CPU usage by their customers. E-Sports released a statement apologizing and clarifying that this was the behavior of a rogue programmer. They also announced that they are donating the value of the bitcoins ($3,713) to the American Cancer Society plus doubling the donation from their own funds.
There were multiple components to the New Jersey case, including a privacy count regarding monitoring of users’ computer even when they were offline. However, the Bitcoin aspect of the complaint is extremely prescient, as there seems to be a burgeoning trend of government regulators looking more seriously at Bitcoin.