David Colburn
ORR- A man whose rural Orr property was raided by the FBI in the spring of 2023 has now pleaded guilty in federal court to a felony computer fraud charge tied to a cryptocurrency mining scheme targeting his former employer.
Joshua Armbrust, 44, entered a plea agreement on April 1 in Minnesota U.S. District Court admitting that he unlawfully accessed the Amazon Web Services (AWS) accounts of Minnetonka-based payment processing company Digital River. Armbrust formerly worked for the company and left in early 2020.
According to federal prosecutors, between December 2020 and May 2021, Armbrust used Digital River’s AWS resources without authorization to mine Ethereum, a type of cryptocurrency. The practice, often referred to as “cryptojacking,” involves secretly using another party’s computing power to verify transactions on a digital blockchain. The process earns the miner a small amount of cryptocurrency as a reward, while sticking someone else with the bill for the significant computing power and electricity used in the process.
Prosecutors say Armbrust racked up more than $45,000 in cloud computing charges to Digital River during the scheme, which directed mined Ethereum to digital wallets and cryptocurrency exchange accounts registered solely in his name. He eventually liquidated at least $7,000 into a Wells Fargo bank account.
The case first came to light following the 2023 FBI raid at Armbrust’s home along Hwy. 23, about five miles northeast of Orr. At the time, Armbrust described the scene to the Timberjay as a team of 15–20 agents accompanied by an electronics-sniffing dog. He said they were at the property for roughly six hours, seizing flash drives, a media server, and his phone.
Shortly after the raid, Armbrust moved to St. Paul, where he was arrested at his residence on Nov. 1, 2024. He was later released on a personal recognizance bond.
While the original charge of felony computer fraud carries a maximum penalty of five years in prison and a $250,000 fine, the plea agreement recommends a significantly lower penalty. In addition to having no prior criminal record, Armbrust received credit for cooperating with authorities and accepting responsibility. Under the terms of the agreement, both prosecution and defense are expected to jointly recommend a sentence of three years’ probation.
Armbrust also agreed to pay $45,270 in restitution to Digital River and to forfeit $8,773 in cryptocurrency proceeds obtained through the scheme.
A sentencing hearing has not yet been scheduled.