Secret Crypto Mine in School Crawl Space Used $17,500 in Electricity

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Cryptocurrency mining may no longer be profitable, but it was booming during the pandemic. But it might still be worth it, even now, if you didn't have to foot the bill for electricity — like the former employee of a small town in Massachusetts, who has been accused of setting up a secret crypto mining operation in the crawl space at a public school.

Nadeam Nahas, a former employee in the facilities department of Cohasset, Ma., is facing charges of fraudulent use of electricity and vandalizing a school. The secret mining operation was discovered inside a crawlspace in Cohasset Middle/High School in December 2021 by the town's facilities director, who was performing a routine inspection. 

The facilities director found "electrical wires, temporary duct work, and numerous computers that seemed out of place," according to an AP News report. With help from the town's IT director, the collection of equipment was identified as a crypto mining operation hooked up to the school's electrical system (illegally, of course). It was removed and examined with help from the Coast Guard Investigative Service and the Department of Homeland Security

The town's police department launched a three-month investigation, culminating in Nahas being identified as a suspect. During the investigation, the police determined that the mining operation ran for eight months and used $17,492 in electricity, according to WCVB. As a result, Nahas resigned from his position as Assistant Facilities Director in March 2022. 

A default warrant was issued Thursday after Nahas failed to show up for his arraignment but has since been canceled after Nahas appeared in court Friday, according to the Boston Globe.

Previous illegal crypto mining operations were found in Ukraine and Kyrgyzstan tapped directly into power grids (although at least one Chinese mining operation also used a school's resources).

Sarah Jacobsson Purewal
Senior Editor, Peripherals

Sarah Jacobsson Purewal is a senior editor at Tom's Hardware covering peripherals, software, and custom builds. You can find more of her work in PCWorld, Macworld, TechHive, CNET, Gizmodo, Tom's Guide, PC Gamer, Men's Health, Men's Fitness, SHAPE, Cosmopolitan, and just about everywhere else.

  • gggplaya
    The irony is if he would have put them out in the open in a normal looking PC case that matches other computers in the school. He probably would have never been caught.
    Reply
  • Fates_Demise
    gggplaya said:
    The irony is if he would have put them out in the open in a normal looking PC case that matches other computers in the school. He probably would have never been caught.
    No... he was burning through $2000 in electricity per month. That was not a small mining set-up. Your talking probably close to 40, 3080s worth of draw. The heat alone would have been hefty.
    Reply
  • tamalero
    Fates_Demise said:
    No... he was burning through $2000 in electricity per month. That was not a small mining set-up. Your talking probably close to 40, 3080s worth of draw. The heat alone would have been hefty.
    A proper solution would be hiding these 3080's hidden inside a compartment in the Heating system of the school.
    Reply
  • USAFRet
    tamalero said:
    A proper solution would be hiding these 3080's hidden inside a compartment in the Heating system of the school.
    And still the power consumption increase would have been seen.
    Reply
  • neojack
    he was burned by his own greed. should have kept it minimal. 2 or 3 PCs, each with 4 gpus on watercooling would mine plenty. small footprint, less suspicious for the unaware people. Did the story sayed if he mined bitcoin ? would be funny if he installed racks of ASICS in the basement
    Reply
  • Endymio
    USAFRet said:
    And still the power consumption increase would have been seen.
    These weren't found by the excess power consumption. If the school didn't notice that after 8 months, they likely never would. But the idea of placing 30+ already-hot computers in a "heating system" is of course absurd.

    My only question is this -- why did the US Coast Guard investigate this crime?
    Reply
  • USAFRet
    Endymio said:
    My only question is this -- why did the US Coast Guard investigate this crime?
    There is a CG unit there, and it is a tiny town of 8,500.

    They probably asked them for assistance, just like Homeland Security. Verify it wasn't some military threat.
    Reply
  • jp7189
    I got stuck on the 3 month investigation involving the coast guard, DHS, and various city personnel which likely cost taxpayers an order of magnitude more than the original $17k theft.
    Reply
  • Well, I hope they can at least recover some of that
    Reply
  • digitalgriffin
    Resume:
    Found uses for untapped resources generating a new income stream.
    Reply