Bitcoin mining rig found hidden in school crawlspace • The Register
Pictures A Massachusetts man accused of using his job as a city assistant facilities director to hide a cryptocurrency mining operation in the basement of a school surrendered to authorities Friday morning after skipping Thursday’s court hearing.
A judge issued a default warrant for Nadeam Nahas’ arrest yesterday on charges of fraudulent use of electricity and vandalizing a school, in connection with the cryptomining operation discovered under Cohasset Middle/High School in December 2021. Nahas surrendered to authorities along with his lawyer this. morning, the Norfolk District Attorney’s office said The register.
Bitcoin mining computers seized by Cohasset Police from school
The mine setup was discovered by Nahas’ chief when he conducted a routine inspection of the school two years ago, Cohasset Police Chief William Quigley told us.
The director “noticed electrical wiring, temporary ductwork, and numerous computers that appeared out of place. After investigating and contacting the city’s IT director, it was discovered that this was a cryptocurrency mining operation illegally connected to the school’s electrical system.” Quigley said.
The setup for cryptomining under a school in Massachusetts
Cohasset police asked US Coast Guard Investigative Services and the Department of Homeland Security to safely remove the machines and determine where they came from. After three months of investigation, and Nahas himself reportedly checking out the machines and denying that he knew what they were, Cohasset detectives found probable cause to charge him with the aforementioned crimes. He resigned his position with the city in early 2022.
Ducts used as part of an illegal cryptocurrency mining operation discovered under a Massachusetts school
According to Boston news station WCVB, Nahas allegedly operated his underground crypto mine for eight months before he was discovered in December, collecting approximately $17,492 (£14,644) in electricity on the district’s dime.
Strike where the power is cheap – or just steal it
Bitcoin mining requires a lot of electricity, and one recently claimed that it uses as much electricity as nation states like the Philippines.
That said, mining Bitcoin or other cryptocurrencies can be profitable if you do it in a state where energy is cheap. Massachusetts is definitely not one of those states, according to a 2021 map of average US electricity prices.
Electricity prices as of January 2023 show that the New England region and Boston, Massachusetts, specifically, are still significantly higher than the national average.
After entering a not guilty plea, Nahas was released on the condition that he stay away from all public buildings in the city, as requested by Norfolk Assistant DA Mark Assad, his office told us.
Nahas is due back in court in May for court hearings. If he is convicted, he risks up to two years in prison. ®
