Hong Kong Care Homes Exposed: Suspects Arrested in Shocking Crypto Mining Operation

Hong Kong authorities just busted a crypto mining ring operating where you'd least expect it—elder care facilities. Turns out some operators found more profitable use for those electricity outlets than powering medical equipment.

The Setup

They'd installed mining rigs in care homes—quiet, constant power supply, and let's be honest—nobody's checking the server racks in the dementia wing. Perfect crime until the electricity bills started looking like a small nation's GDP.

The Fallout

Multiple arrests made as regulators swooped in. Operation apparently funded itself through mining profits while draining resources meant for elderly residents. Classic case of 'if it uses electricity and makes money, why not?' mentality.

Regulatory Response

Hong Kong FSA now reviewing all care facility operations. Because nothing says 'financial oversight' like discovering grandma's oxygen concentrator was competing with ASIC miners for wattage.

Just another day in crypto—where the only thing more volatile than prices is people's ethical boundaries. At least they didn't try to tokenize the residents' medication schedules. Yet.

Hong Kong police urge institutions to monitor spikes in power consumption

Police inspector Ng Tsz-wing of the Sham Shui Po technology and financial crime squad revealed through an exclusive interview with the South China Morning Post that the case was reported on Thursday, September 4, when IT staff at the Sham Shui Po home care detected a slow network speed.

Thorough troubleshooting revealed that unauthorized concealed devices were draining excess power and internet bandwidth. A similar case was also reported in Sau Mau Ping.

The Hong Kong police arrested the two suspects on Friday, September 5, in Mong Kok and Sham Shui Po. An energy engineering firm employed the two technicians and allegedly installed the equipment during a planned renovation of the facilities in August. The police believe the suspects acted individually, not as part of a wider conspiracy. 

Suspected individuals now face charges of abstracting electricity, which may carry a maximum of five years in jail under the Hong Kong Theft Ordinance. The police inspector Ng urged organizations to pay close attention to contractors during installations and watch out for unusual spikes in electricity bills. 

“ 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.”

-Ng Tsz-wing, Hong Kong police inspector

Shanon Squires, Chief Mining Officer at Compass Mining, revealed in an interview that electricity theft for crypto mining is both unlawful and harmful. He said it goes beyond the core tenets for many Bitcoiners, such as private rights. He noted that unauthorized mining directly takes someone’s property without permission and harms them with the bill.

Mining rewards drop by 50% following the 2024 halving 

Digiconomist research estimated that Bitcoin mining generates an annual carbon emission similar to Belgium’s and energy use identical to Thailand’s.  

The arrest follows a similar one earlier this year, when Thai police raided three abandoned houses in Pathum Thani province, capturing 63 appliances illegally connected to utility poles. The UK is also no stranger to such cases. Police in West Yorkshire found an operation in Bradford using diverted power. Tajikistan reported that over $3.5 million was lost in stolen electricity from illegal miners in the first half of 2025. 

Cryptopolitan reported last month that bitcoin miners recorded high profits since the 2024 halving. The report cited a note by JP Morgan analysts Reginald L. Smith and Charles Pearce, who noted that miners earned an average of $57,400 per exahash per second (EH/s) in daily block rewards.   

However, mining rewards have dropped by 50% since the halving in 2024 and increased difficulty by 9% in July. The landscape has driven the mining operational costs and competition compared to the potential rewards.

MARA Holdings, one of the noted crypto mining firms, recorded a revenue of $238 million, which was up 64% year over year, and a net income of $808 million, largely driven by the Bitcoin gains in valuation.

Sign up to Bybit and start trading with $30,050 in welcome gifts