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Iran’s Energy Crisis Blamed on Secret Crypto Mining Farms
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A new report suggests hidden cryptocurrency operations are a major factor in Iran’s ongoing electricity shortages.
TEHRAN – A detailed report has linked Iran’s escalating energy crisis to clandestine cryptocurrency mining farms, which are allegedly the primary cause of widespread blackouts. The report,drawing on local sources and energy experts,asserts that these massive,concealed cryptocurrency mining facilities,purportedly overseen by the Islamic Revolutionary Guard Corps (IRGC),have placed unprecedented strain on Iran’s already fragile electricity infrastructure.
The Outflow of Capital from Iran Through Cryptocurrencies Increased by “70 Percent” In 2024
These large-scale, continuous cryptocurrency mining operations, especially those focused on Bitcoin, are reportedly consuming excessive amounts of electricity. Many of these farms are said to operate from secret locations, obtaining electricity either illegally from the public grid or at subsidized rates, exacerbating blackouts across residential, commercial, and industrial sectors.
Citizens have reported being left without electricity, enduring darkness and heat while the mining farms continue to operate. A resident of Tehran stated: “These power cuts are endless. I can’t take it anymore. They only mine cryptocurrency, but we are deprived of electricity.”
“These power cuts are endless.I can’t take it anymore.”
The energy crisis is also having meaningful economic repercussions. Power outages have reduced productivity in schools, factories, and service centers, further straining Iran’s economy, which is already impacted by sanctions. The lack of electricity has fueled public discontent and anger toward government institutions in both rural and urban areas.
State-run power plants are reportedly operating at full capacity but are unable to meet the soaring demand. Some mining farms are using diesel generators during peak consumption hours, which is both expensive and environmentally damaging.
Calls for Transparency and Regulation
The report underscores that the management and oversight of cryptocurrency mining operations are largely controlled by military and unaccountable institutions. It concludes that Iran’s energy crisis will likely worsen unless transparency, public oversight, and effective legislation are implemented.
In November 2024, Ali Aghamohammadi, head of the economic office of Ali Khamenei, called for the use of cryptocurrency to bypass international sanctions. He stated: “The role of cryptocurrencies in the digital economy cannot be denied. To overcome problems in sectors such as banking and financial payments, which are under sanctions, we can use digital currencies and cryptocurrencies.”
He added that officials should heed Khamenei’s recent remarks on cryptocurrencies, stating that the regime’s leader “also emphasized this issue, and we must move toward ‘proper use of it.'”
