Iran Offers $20 Rewards to Report Illegal Crypto Miners Amid Crisis

Iran Offers $20 Rewards to Report Illegal Crypto Miners Amid Power Shortages

Iran has started offering rewards of $20 to the public for reporting illegal crypto mining activities. This initiative aims to address severe power shortages that are disrupting the country’s electricity grid, exacerbated by an intense heatwave and ongoing energy crisis.

According to a recent report, Iranian authorities have introduced this reward to curb the impact of unregulated mining activities, which have significantly strained the national power grid. Iran is currently experiencing its most severe heatwave in 50 years, leading to widespread power outages and a decline in industrial production. The head of Iran’s state electricity company, Tavanir, Mostafa Rajabi Mashhadi, highlighted that unauthorized mining operations are further stressing the already overstretched power infrastructure.

“Opportunistic individuals have been exploiting subsidized electricity and public networks to mine cryptocurrencies without proper authorization. This unauthorized mining has led to an abnormal surge in electricity consumption, causing significant disruptions and problems within the country’s power grid.”

Mashhadi also noted that more than 230,000 illegal mining devices, consuming 800 to 900 MW of electricity, have been identified. The electricity consumption from these devices is equivalent to that of the Markazi Province and would necessitate the construction of a new 1,300-MW power plant to replace the lost capacity.

In addition to these measures, Iranian intelligence services have targeted over 9,000 accounts belonging to 454 individuals involved in illicit trading since 2022. This effort is part of a broader initiative to control unauthorized activities affecting the nation’s energy supply.

In early May, U.S. senators Elizabeth Warren and Angus King called for a detailed investigation into potential connections between Iranian crypto mining and the evasion of U.S. sanctions. They allege that mined crypto may be used to bypass sanctions, fund terrorist groups like Hezbollah, and support Iran’s military actions.

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