Man charged after cryptocurrency mining operation found in school crawl space

27 February 2023 , 19:53

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The haul of computers pulled out of the crawl space (Image: Cohasset Police Department)

A civic employee has been charged with setting up an illegal cryptocurrency mining operation in a remote crawl space in a school.

The operation, which included 11 computers and complex cooling methods, added an eye-watering $17,500 (£14,511) to the schools electricity bills, court documents claim.

Authorities allege that Nadeam Nahas ran the mine from a crawl space at Cohasset Middle-High School, in the town of Cohasset, Massachusetts, US, from April to December 2021.

The suspect worked as an assistant facilities director for the town from January 2021 until early 2022 when he resigned.

Police were called in December 2021 after the town's facilities director found electic wires, temporary duct work and numerous computers in the crawl space during a routine inspection.

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Alarms were raised after the ducting was found in the crawl space (Cohasset Police Department)

Officers were shown the crawl space by the facilities director and Nahas.

At the time the suspect denied knowing why the equipment was there.

The computers were shut off because so much heat was coming from the space, according to a police report.

He contacted the IT director, who determined that it was a cryptocurrency mining operation unlawfully hooked up to the school’s electrical system, Chief William Quigley of the Cohasset Police Department said.

Cohasset High School where the operation was uncovered (Cohasset Police Department)

Authorities initialy recovered six computers, including some that were inside coolers venting outside, a police report said.

Another five computers were discovered further into the crawl space, the report continued.

The Coast Guard Investigative Service and the Department of Homeland Security assisted with safely removing and examining the equipment.

Nahas was identified as a suspect after a three-month investigation and after a show-cause hearing, a criminal complaint was issued.

Investigators found a debit card in Nahas’s name was used to buy “coleman 48qt coolers, insulated flex ducts, extreme weather foil, insulation sleeves, and a water-based sealant tub, all items located in the crawl space and used to facilitate the mining operation,” the report said.

He has now been charged with vandalising a school and fraudulent use of electricity.

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Naha pleaded not guilty to the pair of misdemeanor charges in connection to the alleged crypto operation.

The alleged crimes were uncovered during a routine inspection (Cohasset Police Department)

Crypto mining is a process which uses computers to create new cryptocurrency. It consumes a large amount of electricity.

A warrant for arrest was issued for the suspect after he initially failed to turn up for his arraignment on Thursday. This was later cancelled on Friday when he attended court to plead not guilty.

Charlie Jones