Iran says 240,000 cryptocurrency mining rigs seized in crackdown

Iranian authorities have seized over 240,000 cryptocurrency mining devices in the past three years, the state electricity company Tavanir said on Sunday, as the country grapples with power shortages and network instability.

Mostafa Rajabi Mashhadi, Tavanir's CEO, told state media that the confiscated mining rigs consumed an estimated 800 megawatts of electricity.

He compared this to the 1,000-megawatt capacity of the Bushehr nuclear power plant, highlighting the significant strain the mining operations place on the national grid.

"Unfortunately, illegal use of the electricity network still occurs in the country," Mashhadi said, calling for increased cooperation with the Economic Security Police to identify and confiscate remaining illegal miners.

Under Iranian law, possession of unregistered cryptocurrency mining equipment can result in confiscation of the devices and fines of up to three times their value.

Tavanir's deputy for transmission and foreign trade estimated that approximately 700,000 illegal mining rigs are still operating in Iran, consuming around 2,000 megawatts of electricity.

The crackdown comes as Iran faces increasing pressure on its electricity grid, exacerbated by factors such as rising temperatures and increased industrial activity. It has led to mass closures of government offices, banks, and schools across most of Iran.

Earlier in the day, Iran's Power Plants Trade Association Chairman Ali Nikbakht predicted a 25,000-megawatt electricity deficit for next year, representing one-third of national consumption.