Iran's Power Drain: The Hidden Cost of Illegal Crypto Mining

In Iran, a staggering number of crypto miners are operating outside the law. Out of the 427,000 active mining rigs, more than 95% are running without proper approval. This has turned Iran into a hotspot for illegal mining activities, all thanks to the country's low electricity prices.

The Power Drain

The head of the Tehran Province Electricity Distribution Company, Akbar Hasan Beklou, recently highlighted the issue. He pointed out that these illegal operations are consuming a huge amount of power—over 1,400 megawatts daily. This is putting a lot of strain on the national power grid. To avoid detection, many of these miners are pretending to be industrial facilities to get cheaper electricity.

Government Crackdown

The government is taking action. In Tehran alone, 104 illegal mining farms have been shut down, and over 1,400 machines have been seized. These operations were found in unexpected places, like underground tunnels and factories. Special teams are now working to track down and dismantle these illegal setups.

Rewards for Reporting

To encourage people to report illegal mining, the government is offering cash rewards. Anyone who reports an unauthorized mining device can get 1 million toman, which is about $24. This move is part of a broader effort to curb the illegal mining activities that are draining the country's resources.

Global Crypto Mining Landscape

Iran is a major player in the global crypto mining scene. It ranks fifth in the world for Bitcoin hashrate distribution, contributing about 4.2% of the total computing power. The United States leads the pack, followed by Kazakhstan, Russia, and Canada.

The Balance Between Opportunity and Strain

The situation raises questions about the balance between economic opportunities and the strain on public resources. While cheap electricity might attract miners, it also leads to significant challenges for the country's infrastructure and energy supply.