Hong Kong authorities have apprehended two individuals suspected of diverting electricity from local care facilities to power cryptocurrency mining operations. Law enforcement officials in Hong Kong announced the arrest of two men, ages 32 and 33, who are accused of installing a total of eight mining devices in the ceiling spaces of two separate offices. These devices were allegedly connected illegally to the care homes’ existing power grids and internet networks.
Investigators stated that five cryptomining machines were discovered at the Sham Shui Po care facility, while an additional three were found at the Kwun Tong location. The illicit operation purportedly resulted in electricity expenses of approximately HK$8,000 and HK$9,000 (equivalent to US$1,153) per month for each institution.
Hong Kong Police Advise Institutions to Monitor Electricity Consumption Increases
Ng Tsz-wing, a police inspector specializing in technology and financial crimes within the Sham Shui Po district, stated in an interview with the South China Morning Post that the investigation began on Thursday, September 4th. IT personnel at the Sham Shui Po care center noticed unusually slow network performance.
Detailed troubleshooting revealed the presence of unauthorized, hidden devices consuming excessive electrical power and internet bandwidth. A comparable incident was also reported in the Sau Mau Ping area.
The two suspects were taken into custody on Friday, September 5th, in the Mong Kok and Sham Shui Po districts. Both individuals were employed by an energy engineering company and are suspected of installing the mining equipment during scheduled renovations at the care facilities in August. Police investigators believe the suspects acted independently, without the involvement of a larger conspiracy.
The accused now face charges related to the unauthorized use of electricity, an offense that carries a potential prison sentence of up to five years under Hong Kong’s Theft Ordinance. Inspector Ng urged organizations to exercise increased vigilance concerning contractors during installation work and to monitor utility bills for any unexpected spikes.
“The public should remain vigilant regarding electricity bills and network usage. Conduct thorough checks and report any suspicious activity to the police.”
-Ng Tsz-wing, Hong Kong Police Inspector
Shanon Squires, the Chief Mining Officer at Compass Mining, commented that electricity theft for cryptocurrency mining is both unethical and illegal. He stated that it contradicts core principles held by many Bitcoin enthusiasts, such as the respect for private property rights, since unauthorized mining directly takes resources from others without permission, ultimately causing financial harm through inflated utility bills.
Cryptocurrency Mining Rewards Reduced by 50% Following the 2024 Halving Event
Research from Digiconomist indicates that Bitcoin mining generates annual carbon emissions comparable to those of Belgium and consumes an equivalent amount of energy as the entire country of Thailand.
The recent Hong Kong arrests are similar to previous instances, including a raid in Thailand earlier in the year where police discovered 63 mining devices illegally connected to power lines in abandoned homes in Pathum Thani province. Instances of energy theft for mining have also been recorded in the UK, including one in West Yorkshire, and in Tajikistan, where authorities reported losses exceeding $3.5 million due to illegal mining operations during the first half of 2025.
Cryptopolitan previously reported significant profitability for Bitcoin miners following the 2024 halving event. Analysts Reginald L. Smith and Charles Pearce from JP Morgan noted that miners were earning an average of $57,400 per exahash per second (EH/s) in daily block rewards.
However, since the 2024 halving and the subsequent 9% increase in mining difficulty in July, mining rewards have been reduced by 50%. This shift has increased operational costs and intensified competition within the mining industry, reducing potential profits.
MARA Holdings, a prominent cryptocurrency mining company, reported revenues of $238 million, reflecting a 64% year-over-year increase, and a net income of $808 million, largely attributed to appreciation in the value of Bitcoin holdings.
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