Two men arrested by Hong Kong police for cryptocurrency mining at a nursing home

Recently, Hong Kong experienced a unique electricity theft case, with methods and locations that were unexpected. The Hong Kong police took action and successfully detained two male technicians. They are suspected of abusing their positions to illegally install cryptocurrency “mining” equipment within care homes serving disabled individuals, and stealing electricity to keep the devices running around the clock for personal gain. This case not only exposes new issues arising from cryptocurrency mining activities on the regulatory fringe but also serves as a wake-up call for internal security and management across social institutions.

Case Details

According to the Cyber and Financial Crime Investigation Team of the Sham Shui Po Police District, the case was uncovered due to abnormal network activity at one of the care homes. When the IT staff was troubleshooting the repeated slowdown of the network, they unexpectedly discovered a batch of unauthorized electronic devices in the ceiling cavity of the office. This discovery immediately raised the alarm among the staff, who promptly reported it to the authorities.

After police investigation, further clues led to the discovery of similar hidden devices at another care home located in Sau Mau Ping. In-depth investigation confirmed that these devices were professional mining machines used for cryptocurrency mining. A total of eight such devices were installed across the two care homes, cleverly concealed in the space above suspended ceilings. Unless specifically inspected, they were extremely difficult to detect.

These mining machines were set to operate 24/7, and their massive power consumption directly caused abnormal spikes in the electricity bills of both care homes. Preliminary estimates suggest that these illegal mining machines generated an additional monthly electricity cost of up to HKD 9,000 (approximately USD 1,153). This expense, originally intended for caring for disabled individuals, was unknowingly diverted to illegal mining activities.

Police quickly identified two suspects and successfully detained them in Mong Kok and Sham Shui Po. The men are aged 32 and 33, both technicians who had previously carried out renovation work at these care homes. Police accuse them of exploiting their access to the facilities during work to secretly carry out this “parasitic” mining scheme. Currently, investigators believe this was an individual act by the suspects, without involvement from larger criminal groups. Under Hong Kong’s Theft Ordinance, the illegal use of electricity is defined as “theft of electricity,” which can carry a maximum sentence of five years in prison upon conviction.

Superintendent Wu Tze-yung of Sham Shui Po Police District, who is handling the case, issued a warning to social organizations and the public. He urged companies and organizations to closely supervise contractors and their staff during renovation or maintenance work, and to conduct thorough inspections after project completion. Additionally, he recommended paying close attention to monthly electricity bills and network usage; any unexplained surges or anomalies should be investigated immediately, and police should be contacted if necessary. Superintendent Wu emphasized, “These hidden devices can operate unnoticed for months, causing ongoing economic losses and potential safety hazards.”

This case has also attracted attention from the cryptocurrency industry. Shanon Squires, Chief Mining Officer of the well-known mining company Compass Mining, expressed strong condemnation of such behavior in an interview. He clearly stated, “This kind of activity is essentially ‘electricity theft,’ a serious infringement. It directly violates core principles held by many Bitcoin supporters, such as respecting private property rights and not harming others. Stealing electricity without permission is taking someone else’s property and making them pay the bill, which is undoubtedly harmful.”

Squires also offered an interesting technical perspective. He pointed out that the devices involved, as shown by the Hong Kong police, “do not seem to be Bitcoin mining machines.” He speculated that this might be a mining operation targeting “altcoins.” He explained, “In small-scale illegal mining activities, mining altcoins is more common than mining Bitcoin, unless it’s a large-scale group operation.” This also reflects that, as the variety of cryptocurrencies increases, illegal mining targets are becoming more diverse.

A Glimpse of the Bigger Picture

Hong Kong’s case is far from isolated; it is actually a microcosm of the increasingly severe global issue of illegal mining. Cryptocurrency mining, especially for Proof-of-Work (PoW) coins, fundamentally involves high-intensity hash computations to compete for ledger rights and earn new coins. This process consumes enormous amounts of energy.

According to data from Digiconomist, the annual carbon footprint of the Bitcoin network exceeds 10,500 million tons of CO2, comparable to the annual emissions of Belgium; its electricity consumption is akin to Thailand’s entire national usage; and its freshwater consumption matches Switzerland’s total demand. Such massive energy costs drive some criminals to see electricity theft as a “shortcut.”

Similar cases are emerging worldwide: In Thailand, police earlier this year raided three abandoned houses in Pathum Thani Province, seizing 63 illegal mining machines connected to public power poles. In the UK, police in West Yorkshire discovered a large illegal mining site in Bradford, relying entirely on stolen electricity. In Central Asia, energy theft is even more rampant. Tajikistan’s Attorney General stated that in the first half of 2025 alone, illegal mining stole electricity worth over USD 3.5 million. Neighboring Kazakhstan also found illegal mining farms with power consumption enough to supply a city of 70,000 residents.

These cases reveal an unsettling reality: under the combined pressures of high energy costs and potential cryptocurrency rewards, electricity theft has become a global crime trend. It not only causes direct economic losses to power companies and innocent users but also poses serious threats to grid stability and public safety. Illegal mining devices hidden in ceilings, basements, or abandoned buildings often lack proper cooling and fire prevention measures, making them highly susceptible to overheating and fires.

Conclusion

The case involving the care homes in Hong Kong vividly exposes the dark side of cryptocurrency mining. It reminds us that technological development often brings new ethical and legal challenges. For institutions, strengthening internal oversight and security measures is urgent; for regulators, effectively combating such emerging crimes and guiding the industry toward more sustainable development is a pressing issue. For society as a whole, this case prompts deeper reflection: in the pursuit of digital wealth, how can we uphold the bottom line of law, morality, and safety?