Massachusetts authorities have brought to trial a man who allegedly ran a cryptocurrency mining operation in the crawlspace beneath a high school in Cohasset, a small coastal town about 20 miles from Boston. The operation was discovered in late 2021 by a city official who noticed electrical wires and temporary ductwork in an “elevated space” near the school’s boiler room.
The narrow crawl space contained what appears to be two sets of specialized mining rigs, one group of five and the other of six computers, according to photos released by the Cohasset Police Department. The equipment was connected to the school’s electrical system and housed in several coolers with ducts that release hot air outside.
Police’s main suspect in the crime is Nadeam Nahas, who worked for the City of Cohasset as an HVAC coordinator and assistant director of facilities from January 2021 until early 2022. Court records say the operation took place from April to December 2021 and cost about $17,500 worth of electricity, reports the Boston Globe (opens in new tab).
In a statement to the BBC (opens in new tab)Cohasset Police Chief William Quigley said that after the raid was reported by the facilities director, “Detectives interviewed the director, who said that during a routine inspection of the school he noticed electrical wires, temporary ductwork and several computers. that seemed out of place.”
Authorities said Nahas made references to encryption on a Twitter account, and investigators found receipts for purchases from the Home Depot hardware chain, including “Coleman 48qt coolers, insulated flexible ducting, extreme weather sheet, insulation sleeves and a bathtub water-based sealant, all items located in the crawl space and used to facilitate the mining operation,” according to the police report.
At the time of the initial investigation, Nahas and the city facilities director told detectives that they had turned off the computers due to the amount of heat generated. The subsequent investigation that resulted in charges against Nahas involved assistance from the US Coast Guard and its parent organization, the Department of Homeland Security.
Nahas was taken before court on Friday, February 24, where he pleaded not guilty to two charges related to the mining operation: fraudulent use of electricity and vandalism at Cohasset High School. Nahas is due back in court on May 17.
We’ve summarized last year’s news highlights in the crypto space as a series of meltdowns, crashes and outright fraudsters. I’m glad this year has, so far, been a competition for the same: this test, the world’s first crypto energy drink, some bean dudes getting hacked, repainted mining GPUs on the market, and the FBI confirming that, yes, Korea do Norte continues to steal a lot of cryptocurrencies.