Court Rules
All enforcement actions
Consent DecreeLow Risk

NJ Division of Consumer Affairs Settles with Tidbit Developer Over Unauthorized Bitcoin Mining

Jeremy RubinMay 26, 2015New Jersey Attorney General

Penalty Amount

$25,000

Summary

The New Jersey Division of Consumer Affairs obtained a consent decree against Jeremy Rubin, developer of Tidbit Bitcoin-mining software, for accessing New Jersey computers without users' knowledge or consent. The settlement includes a suspended $25,000 monetary penalty and prohibits future unauthorized access, requiring clear notification and verifiable consent.

Remedy

Rubin is prohibited from accessing or attempting to access New Jerseyans' computers without clearly and conspicuously notifying the owners and obtaining their verifiable consent. The $25,000 monetary settlement is suspended and will be automatically vacated within two years if he complies with the terms.

Monetary PenaltyInjunctionConsent Decree

Contract Impact

In-house legal teams should review vendor agreements where their company acts as a software provider (like Tidbit) to web developers or other downstream users. Focus on clauses governing data processing, computer resource access, user consent mechanisms, and compliance representations. Specific clauses to scrutinize include: (1) data processing terms authorizing use of end-user device resources; (2) consent and notification requirements for end-users; (3) audit rights and compliance certifications from downstream users; and (4) indemnification provisions for unauthorized access claims. Changes may be needed to mandate clear, conspicuous end-user notification and verifiable consent before any processing power access, require downstream users to maintain compliant privacy policies, and add termination rights for non-compliance with access restrictions.

Contract Search Terms

unauthorized access prohibitionuser consent requirementsdata processing authorizationcomputer resource usage clausenotification and opt-out mechanismverifiable consent standardsoftware deployment compliancethird-party vendor oversightprocessing power limitationconsumer fraud representation

Laws Cited

New Jersey Computer Related Offenses ActNew Jersey Consumer Fraud Act

Violation Types

Entity Details

Entity

Jeremy Rubin

Industry

Technology

Official Sources

Source Evidence

Entity Name
"Jeremy Rubin, a Massachusetts resident"
Fine Amount
"$25,000 monetary settlement"
Laws Cited
"New Jersey’s Computer Related Offenses Act"
Laws Cited
"Consumer Fraud Act"
Violation Types
"without the computer owners’ knowledge or consent"

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