Two Hong Kong technicians have been arrested after allegedly siphoning electricity and internet access from care homes for the disabled to power a hidden crypto mining operation.
Key Takeaways:
- Two technicians were arrested for secretly running crypto miners using electricity and internet from care homes for the disabled.
- The unauthorized operation caused electricity bills to spike and slowed down internet performance.
- Authorities warned the public to monitor utility usage during facility upgrades.
The unauthorized setup caused electricity bills to spike by up to HK$9,000 ($1,153), raising red flags for staff and prompting a police investigation, according to the South China Morning Post.
Authorities said the men, aged 32 and 33, installed eight mining machines in the suspended ceilings of two care home offices—five devices in Sham Shui Po and three more in Kwun Tong.
Crypto Miners Secretly Drain Power and Internet from Care Facilities
The miners ran non-stop, drawing power and bandwidth from the facilities’ systems.
The case came to light when one care home reported unusually sluggish internet performance and elevated power consumption.
Inspector Ng Tsz-wing of the Sham Shui Po police district’s technology and financial crime unit said the facility’s IT team discovered unauthorized equipment hidden above the ceiling tiles during a routine check.
“After in-depth investigation and analysis, police found that the two men from an engineering company took the opportunity of facilities upgrading in August and connected the mining machine to the institutions’ network and power system,” Ng said.
“And they proceeded to mine cryptocurrency.”
The suspects, who have worked at the engineering firm for several years, were arrested on Friday in Mong Kok and Sham Shui Po.
Police believe the operation was not part of a wider syndicate, describing it as an isolated incident.
While the institutions involved were not named, authorities are continuing their investigation. Under Hong Kong’s Theft Ordinance, unauthorized use of electricity carries a maximum penalty of five years in prison.
Inspector Ng urged the public to remain vigilant during facility upgrades. “The public should also pay more attention to electricity bills or network usage and make relevant checks and notify police in case they find some suspicious circumstances,” he said.
Francis Fong Po-kiu, honorary chairman of the Hong Kong Information Technology Federation, noted that the cost of mining cryptocurrencies like Bitcoin is high due to the intense power demands of running mining equipment continuously.
“It is like turning on your air conditioning all day,” Fong said. “Some bad people may take the risk of breaking the law to save on electricity to generate their bitcoin.”
Crypto Influencer ‘CP3O’ Sentenced for $4.5M Cryptojacking Scheme
Last month, Charles O. Parks III, known online as “CP3O,” was sentenced to one year and one day in prison for orchestrating a $4.5 million cryptojacking scheme.
According to the U.S. Department of Justice, Parks stole computing power and storage from major cloud providers and used it to illegally mine cryptocurrency between January and August 2021.
The DOJ says Parks converted his illicit gains into cash and used the funds to finance a lavish lifestyle, including a Mercedes-Benz, luxury hotels, jewelry, and first-class travel.
Despite portraying himself as a self-made crypto success on social media, authorities say his wealth was rooted in fraud.
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