Bitcoin mining rig found stashed in school crawlspace
- Reference: 1677281410
- News link: https://www.theregister.co.uk/2023/02/24/cryptocurrency_mining_school/
- Source link:
A judge issued a default warrant for Nadeam Nahas' arrest yesterday on charges of fraudulent use of electricity and vandalizing a school, in relation with the cryptomining operation discovered under Cohasset Middle/High School in December, 2021. Nahas surrendered to authorities with his attorney this morning, the Norfolk District Attorney's office told The Register .
Bitcoin mining computers seized by Cohasset Police from the school
The mining setup was discovered by Nahas' boss when conducting a routine inspection of the school two years ago, Cohasset Police Chief William Quigley told us.
The director "noticed electrical wires, temporary duct work, and numerous computers that seemed out of place. After researching and contacting the town IT director, it was learned that this was a cryptocurrency mining operation which was unlawfully attached to the school electrical system," Quigley said.
The crypto mining setup under a Massachusetts school
Cohasset police asked the US Coast Guard Investigative Services and Department of Homeland Security remove the machines safely and determine where they came from. After three months of investigation, and Nahas himself [1]allegedly checking out the machines and denying he knew what they were, Cohasset detectives found probable cause to charge him of the aforementioned crimes. He resigned his position with the town in early 2022.
Ductwork used as part of an illegal cryptocurrency mining operation discovered under a Massachusetts school
According to Boston news station WCVB, Nahas is said to have operated his underground crypto mine for [2]eight months before being discovered in December, racking up approximately $17,492 (£14,644) in electricity on the district's dime.
Strike where the power's cheap - or just steal it
Bitcoin mining requires a lot of power and a recent claimed 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 decidedly [3]not one of those states, according to a 2021 map of average US retail electrical prices.
[4]Malaysian Police crush crypto-mining kit to punish electricity thieves
[5]Ganja believe it? Police make hash of suspected weed farm raid, pot Bitcoin mine instead
[6]Cryptocurrency laundromat Blender shredded by US Treasury in sanctions first
[7]Crypto market crashes on Celsius freeze, inflation news
Electricity prices as of [8]January 2023 show the New England region and Boston, Massachusetts, specifically, to still be considerably higher than the national average.
After entering a plea of not guilty, Nahas was released on the condition the he stay away from all public buildings in the town, as requested by Norfolk assistant DA Mark Assad, his office told us.
Nahas is due back in court in May for pretrial hearings. If convicted, he faces up to two years in prison. ®
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[1] https://www.bostonglobe.com/2023/02/23/metro/arrest-warrant-issued-former-cohasset-employee-accused-running-crypto-mine-out-schools-crawlspace/
[2] https://www.wcvb.com/article/cohasset-massachusetts-school-employee-power-cryptocurrency-mine/43025932
[3] https://www.globalenergyinstitute.org/average-electricity-retail-prices-map
[4] https://www.theregister.com/2021/07/19/malaysian_police_crush_crytpomining_compiuters_with_steamroller/
[5] https://www.theregister.com/2021/05/30/cannabis_raid_smokes_out_bitcoin_mine/
[6] https://www.theregister.com/2022/05/06/us_treasury_sanctions_blender/
[7] https://www.theregister.com/2022/06/13/celsius_freeze_wipes_out_18/
[8] https://www.bls.gov/regions/midwest/data/averageenergyprices_selectedareas_table.htm
[9] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_security/cybercrime&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2Y-mV8dXWbfDv3zFTFTfiNgAAAFc&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0
[10] https://whitepapers.theregister.com/
Re: Damned if you do, damned if you don't.
Hey, I had a court security guard take offense to my large set of keys (it's a weapon, ya know, not something vital to my job) and order me to LOCK MY KEYS IN MY CAR.[1]
And yes, I asked him to repeat that, just to confirm.
They're all complete morons.
[1] this was for jury duty, at which point I walked out, got on my motorcycle (I don't even have a car) and drove off. The clerk called and asked why I failed to show, and did a facepalm and excused me.
Re: Damned if you do, damned if you don't.
Security guards are the worst, underpaid, and think they're something special. And often due to the nature of the recruiting process, overmuscled dimwits
Accounting control
So whoever approved payments for the electricity bill did not notice?
Re: Accounting control
It's not like the Beancounters could do a Code Red and order the power cut or freeze all payments to the electric company until they figured it out.
Maybe somebody did notice and added it as an item for the facilities people to take a look at, during their routine inspection?
Crawl space? Come on, this is a techy publication, them's Jefferies Tubes!
I read that as "a tetchy publication" and thought hang on, that's a bit strong... "acerbic" maybe, "cynical" definitely.. but "tetchy"?
Coast Guard?
See icon ------------------->
Re: Coast Guard?
It's a coastal town, hence the Coast Guard provides advanced forensic support.
Ironically, the town recently announced a community electricity program for discounted electricity rates.
He would have got away with it
If it wasn’t for those pesky kids!
Re: He would have got away with it
Thank you sir.
Damned if you do, damned if you don't.
...stay away from all public buildings...
....due back in court...