Former Cohasset employee charged with stealing thousands from city-to-power cryptomining
A former school employee in Cohasset, Massachusetts, is accused of running an operation to make money from cryptocurrency by stealing electricity. Officially, Nadeam Nahas worked for the Cohasset school system in the facilities department. But the Cohasset Police Department claims he also secretly operated a cryptocurrency mine inside a crawl space at Cohasset Middle/High School, stealing nearly $18,000 in electricity from the district to do so. In December 2021, school staff called Cohasset police after finding several computers, wiring, and ventilation equipment inside a crawl space in the building that houses Cohasset Middle and High School. Police say the city’s IT director recognized the setup as a crypto mine, and city investigators enlisted the help of the Department of Homeland Security to remove the equipment and examine it. After a three-month investigation, police say the mine ran for eight months, collecting $17,492 in electricity. They identified Assistant Facilities Director Nadeam Nahas as the man who set up the mine. He is now charged with fraudulent use of electricity and vandalizing a school. Professor of Information Technology Management at Babson College Steve Gordon is a cryptocurrency expert. He is not connected to this criminal case, but explained the process of cryptomining to 5 investigators. “Cryptomining is the way a network that supports a cryptocurrency is kept secure,” he said. “One of the reasons they call it mining is that when a miner actually creates a new block, adds some transactions to the blockchain, they are rewarded with coins that are created out of thin air.” High-powered computers must continuously work to solve complex problems, aiming to validate connections and keep crypto transactions secure. When successful, miners are rewarded for their efforts with new coins, potentially yielding thousands of dollars. Bitcoin miners, for example, are currently rewarded with 6.25 Bitcoins. But the powerful computers have to run constantly, and in turn consume a large amount of energy.” to run a small country like Switzerland or something like that,” said Gordon. In a place like Massachusetts, electricity costs are eating away at potential mining profits. 5 Investigates’ Karen Anderson asked Gordon if it makes sense to try crypto mining anywhere in New England. “Not really,” Gordon replied. “Not unless you agree at some point with an energy supplier to provide it very cheaply.” Nahas resigned from his position with the Cohasset schools in March 2022. When reached by phone, Nahas declined to comment. He will be arraigned Thursday in Quincy District Court.
A former school employee in Cohasset, Massachusetts, is accused of running an operation to make money from cryptocurrency by stealing electricity.
Officially, Nadeam Nahas worked for the Cohasset school system in the facilities department. But the Cohasset Police Department claims he also secretly operated a cryptocurrency mine inside a crawl space at Cohasset Middle / High School, stealing nearly $18,000 in electricity from the district to do so.
In December 2021, school staff called Cohasset police after finding several computers, wiring and ventilation equipment inside a crawl space in the building that houses Cohasset Middle and High School. Police say the city’s IT director recognized the setup as a crypto mine, and city investigators enlisted the help of the Department of Homeland Security to remove the equipment and examine it.
After a three-month investigation, police say the mine ran for eight months, collecting $17,492 in electricity. They identified Assistant Facilities Director Nadeam Nahas as the man who set up the mine. He is now charged with fraudulent use of electricity and vandalizing a school.
Babson College professor of information technology management Steve Gordon is a cryptocurrency expert. He is not connected to this criminal case, but explained the process of crypto mining to 5 Investigates.
“Crypto mining is the way a network that supports a cryptocurrency is kept secure,” he said. “One of the reasons they call it mining is that when a miner actually creates a new block, adds some transactions to the blockchain, they are rewarded with coins that are created out of thin air.”
Powerful computers must continuously work to solve complex problems, with the aim of validating connections and keeping crypto transactions secure. When successful, miners are rewarded for their efforts with new coins, potentially yielding thousands of dollars. Bitcoin miners, for example, are currently rewarded with 6.25 Bitcoins.
But the powerful computers must run constantly, and in turn consume a large amount of energy.
“It’s estimated that the total amount of energy used in the Bitcoin blockchain would be enough to power a small country like Switzerland or something like that,” Gordon said.
In a place like Massachusetts, electricity costs eat away at potential profits from mining.
5 Investigates’ Karen Anderson asked Gordon if it makes sense to try crypto mining anywhere in New England.
“Not really,” Gordon replied. “Not unless you agree at some point with an energy supplier to provide it very cheaply.”
Nahas retired from his position with the Cohasset schools in March 2022.
When reached by phone, Nahas declined to comment. He will be arraigned Thursday in Quincy District Court.
