A former school employee from Cohasset, Massachusetts, is facing criminal charges after investigators discovered a "cryptocurrency mining operation" under a building. Nadim Nahas, 39, was charged with electricity fraud and vandalism, according to the Kohast Police Headquarters. An arrest warrant was issued against him after he failed to appear in court.
Fox 25 in Boston reports that the facilities manager at Cohasset Middle/High School discovered the facility in December 2021 and alerted police about unusual cables and ducts in the small basement below the building. Investigators found that the school's electrical system was illegally linked to a cryptocurrency mining operation.
Cryptocurrency mining is the process that creates digital currencies such as Bitcoin. Transactions are verified on a decentralized digital network called blockchain. Instead of relying on a central authority such as a bank to manage transactions, blockchain uses a distributed network of computers to verify and keep secure and transparent records of all transactions. The mining process requires computers to solve complex math problems using special hardware and software. Miners compete with each other to solve these problems, and the first miner to find a solution is rewarded with a new cryptocurrency and a confirmed transaction fee.
The problem with the Cohasset neighborhood and school system (for that matter) is that mining requires a lot of computing power. This means high energy consumption, which generates a lot of heat. Miners involved in surfacing operations must invest in specialized equipment and pay higher electricity costs.
After consulting with the city's International Olympic Committee, investigators and agents from the US Coast Guard Investigative Service and the Department of Homeland Security seized the forensic material.
According to Globe , after a three-month investigation, the police identified Nadim Nahhas as a suspect. The former vice president of Cohasset Nahas is retiring as a city employee in early 2022.