Amid a historic heatwave and severe power shortages, Iran is intensifying its crackdown on illegal cryptocurrency mining, which officials claim is exacerbating the country’s <a href="https://ultramining.com/news/en/minnesota-man-faces-accusations-of-electricity-theft-for-bitcoin-mining/">electricity</a> crisis. The Iranian government is now offering bounties to citizens who report unauthorized mining activities, as the nation struggles to manage its power grid and maintain industrial production, according to <a href="https://www.iranintl.com/en/202408135616">Iranintl</a>. 
Mostafa Rajabi Mashhadi, CEO of Iran’s state electricity company Tavanir, highlighted that unauthorized mining operations have been exploiting subsidized electricity, leading to abnormal surges in consumption and significant disruptions to the power grid. In response, the government has introduced a reward of one million toman (approximately $20) for each report of <a href="https://ultramining.com/news/en/abkhazia-intensifies-crackdown-on-illegal-crypto-mining/">illegal mining</a> equipment. 
So far, authorities have confiscated over 230,000 illegal mining devices, consuming the equivalent of 800 to 900 megawatts of power—comparable to the electricity usage of Iran’s Markazi Province. To supply this amount of electricity, a 1,300-megawatt power plant would be required. 
The crackdown comes as Iran faces its most severe heatwave in 50 years, with frequent power outages crippling industrial production across the country. Iranian authorities have consistently uncovered illegal mining operations in public places such as schools and mosques, which benefit from free or heavily subsidized electricity. 
The Iranian government's relationship with cryptocurrencies has been complex, as digital assets have been used to obscure trade and evade sanctions, while also enabling illicit activities. Reports suggest that influential networks and some Chinese companies have established large-scale mining operations in Iran, possibly with the tacit approval of the country’s intelligence services and the Revolutionary Guard. 
As the power crisis deepens, the government’s aggressive stance against illegal crypto mining underscores the growing tension between the need to manage energy resources and the economic pressures driving unauthorized mining activities.

Iran Cracks Down on Illegal Crypto Mining Amid Power Crisis

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