Iran Official Says 95% of 427,000 Crypto Mining Devices are Illegal
Officials say cheap power turned Iran into a magnet for rogue crypto operations
Iran is confronting a massive illegal crypto-mining surge, with officials estimating that more than 95% of the country’s 427,000 active devices run without permits. Akbar Hasan Beklou, CEO of the Tehran Province Electricity Distribution Company, said state-subsidized electricity has made the country a “paradise” for unlicensed miners, burdening the grid and raising blackout risks.
Authorities say illicit rigs draw over 1,400 megawatts around the clock — comparable to a large power plant — while many operators disguise sites as factories to secure cheaper tariffs. In Tehran Province, inspectors have shut 104 unauthorized farms and seized 1,465 machines, an amount officials equate to the monthly consumption of nearly 10,000 households. Identified hotspots include Pakdasht, Malard, Shahre Qods, and industrial zones in southwest Tehran, where some farms were hidden in tunnels and factories using subsidized lines.
Beklou said specialized inspection teams now work with law enforcement to dismantle operations and protect supply. To widen the dragnet, the government in August offered cash bounties to whistleblowers: citizens who report unlicensed miners can claim 1 million toman — roughly $24 — for every device identified. The goal, officials say, is to curb power theft ahead of peak-demand seasons and stabilize electricity for homes and legitimate businesses.
Beklou has described Iran as one of the world’s largest crypto-mining hubs. Independent estimates, however, place the country at about 4.2% of global Bitcoin hashrate, ranking fifth behind the United States (44%), Kazakhstan (12%), Russia (10.5%), and Canada (9%). Whether fourth or fifth, the message from authorities is clear: illegal mining has exploded, enforcement is intensifying, and the national grid remains under pressure as inspections, raids, and citizen tips expand across the country.
