Town official set up secret cryptocurrency mining operation in crawl space at local school, police say

A town official allegedly set up a secret cryptocurrency mining operation in a crawl space under a Massachusetts school, according to police.

Authorities allege that Nadeam Nahas, 39, “unlawfully attached” the system to the electrical system at Cohasset Middle High School.

Crypto mining is the process of validating cryptocurrency transactions and creating new cryptocurrency, which consumes a large amount of electricity.

An investigation was launched in December 2021 when the school’s director of facilities found wires, new ductwork and numerous computers in the remote crawl space.

The equipment was removed and forensically examined by Cohasset police, with the help of the US Coast Guard Investigative Service and the Department of Homeland Security, according to NBC Boston.

Following a three-month investigation, Mr Nahas, an assistant facilities director with the town of Cohasset was identified as the suspect by investigators.

He was due to appear in court on Thursday charged with fraudulent use of electricity and vandalising a school, but reportedly failed to show up.

 (Cohasset police)
(Cohasset police)

A judge issued a default warrant, a spokesperson for the Norfolk district attorney’s office told the Associated Press.

Mr Nahas resigned from his job in early 2022 after a criminal complaint was issued against him.

The Associated Press contributed to this article.