It's been in the news before.
It's spectacular fishing from NJ state attorney, it could in theory violate the law as written if deployed on a website and mined bitcoins without implied consent by the client (but then again I could argue the same for flash ads), but the whole thing took place in MA and as far as anyone is aware only in lab environments in MA as part of the competition. The code could be used maliciously, but wasn't and there is no evidence it ever was, its NJ overreaching, pure and simple.