Iran Closes 8,200 Illegal Cryptocurrency Mining Centers, Seizing 246,000 Crypto Miners

In an escalating crackdown on illegal cryptocurrency mining activities, Iranian authorities have reported the closure of over 8,200 unauthorized crypto mining facilities in the past three years. This campaign led to the seizure of more than 246,000 crypto miners consuming a hefty 680 megawatts (MW) of energy, as announced by Mostafa Rajabi-Mashhadi, a spokesperson for the electric power industry.

The underground operations have reportedly stolen 1.8 billion kilowatt hours (KWh) of electricity, primarily in the provinces of Isfahan and Tehran, followed by Khorasan Razavi, Khuzestan, Markazi, Fars, and East Azerbaijan. It is estimated that an additional 1,200 MW of power capacity is still being unlawfully utilized by illegal crypto miners.

The Iran Power Generation, Transmission, and Distribution Company (Tavanir) took a firm stance against unlicensed crypto miners in July 2022. By the close of the year, they had successfully located and shut down 7,200 unauthorized mining farms.

Despite legalizing bitcoin mining in 2019, Iran has intermittently halted legal operations due to power shortages during periods of high electricity demand, such as summer and winter months. Registered mining facilities are also subject to higher electricity rates compared to other industries in the country.

Owners of cryptocurrency mining equipment are required by the Iranian Ministry of Energy to report their device locations to the Ministry of Industries, Mining and Trade’s Comprehensive Trade System. Negligence in reporting can lead to significant fines.

Further punctuating the severity of the situation, this report follows the recent revelation of the Tehran Stock Exchange operator’s illegal possession and operation of 82 crypto mining rigs. These machines were confiscated by the Economic Security Police of the Islamic Republic, resulting in the subsequent resignation of the exchange’s CEO, Ali Sahraei.