Iran Cracks Down on Illegal Crypto Mining, Seizes 1,465 Devices

Iran Faces Widespread Illegal Cryptocurrency Mining Crisis Straining National Power Grid

  • Over 95% of Iran’s 427,000 crypto mining devices operate illegally.
  • Illegal mining consumes about 1,400 megawatts, straining the national power grid.
  • Authorities have shut down 104 unauthorized mining farms, seizing 1,465 machines in Tehran Province.
  • Iran offers a $24 reward for reporting unauthorized crypto mining equipment.
  • Iran ranks fifth globally in Bitcoin hashrate, contributing 4.2% of total network power.

Iran is experiencing a widespread crisis of illegal cryptocurrency mining, with officials estimating that more than 95% of its 427,000 active mining machines are operating without permission.

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This issue has arisen mainly due to the country’s heavily subsidized electricity, attracting unauthorized miners.

The illegal operations consume over 1,400 megawatts of electricity continuously, placing significant pressure on Iran’s electricity grid.

Many illicit miners disguise their rigs as industrial units to get access to cheaper power, increasing the challenge of controlling the problem.

Akbar Hasan Beklou, CEO of the Tehran Province Electricity Distribution Company, stated that 104 unauthorized mining farms were shut down recently in Tehran Province alone.

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Authorities confiscated 1,465 mining devices, which use about as much electricity as nearly 10,000 homes.

Hotspots for these illicit farms include Pakdasht, Malard, Shahre Qods, and parts of southwestern Tehran’s industrial zones.

Some farms were hidden underground or inside factories using subsidized power connections.

The government is taking additional steps by offering a cash reward to citizens who report illegal mining activities. Mostafa Rajabi Mashhadi, CEO of the state utility Tavanir, said informants receive around $24 for each unauthorized mining device they report.

According to a June report, Iran ranks fifth globally in Bitcoin hashrate distribution, producing 4.2% of the total computational power used to mine Bitcoin.

The top four countries are the United States (44%), Kazakhstan (12%), Russia (10.5%), and Canada (9%).

This ranking highlights Iran’s significant role in the global crypto mining landscape despite the illegal activities dominating the sector.

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