Iran's Urgent Battle Against Illegal Crypto Mining Amid Power Crisis

Iran is intensifying its crackdown on illegal cryptocurrency mining as the nation grapples with a severe power crisis, worsened by an unprecedented heatwave. Authorities attribute unauthorized crypto mining to significant strain on the power grid, resulting in widespread industrial disruptions. To combat this issue, a bounty program has been introduced, encouraging citizens to report illegal mining activities.

Iran's Intensified Measures Against Unauthorized Mining

Iranian officials are ramping up efforts to address the crisis, with Mostafa Rajabi Mashhadi, CEO of the state electricity company Tavanir, highlighting the detrimental impact of illegal mining on the electricity supply. He stated,

“Opportunistic individuals have been exploiting subsidized electricity and public networks to mine cryptocurrencies without proper authorization.”

This unauthorized activity has led to an abnormal surge in electricity consumption, creating significant problems for the nation’s power grid.

Bounty Program to Combat Illegal Mining

In a bid to tackle the illegal mining issue, Iranian officials have launched a bounty program, offering one million toman (approximately $20) for reports of unauthorized mining equipment. So far, authorities have confiscated over 230,000 illegal mining devices, which collectively consumed as much electricity as the entire Markazi Province. This crackdown underscores growing concerns about the impact of cryptocurrency on Iran’s infrastructure, amidst suggestions that foreign entities, including Chinese companies, may be involved in large-scale operations.

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