Iran Shuts Down 100+ Illegal Crypto Farms Amid Nationwide Crackdown

Iran’s cryptocurrency mining sector has spiraled into a large-scale illegal operation, with authorities estimating that the overwhelming majority of the country’s mining activity - over 95% of active devices - runs without proper authorization.

Akbar Hasan Beklou, head of the Tehran Province Electricity Distribution Company, revealed that Iran has quietly become the world’s fourth-largest crypto mining hub, driven largely by its extremely low electricity costs. These subsidies have turned the country into what he called a “haven for illegal miners,” who exploit cheap power and hide their activity behind industrial fronts.

Officials estimate that these illicit miners collectively draw more than 1,400 megawatts of power continuously, straining the national grid and threatening regular electricity supplies. Many of the operations disguise themselves as legitimate factories or workshops to tap into discounted energy rates.

To contain the surge, the government has launched nationwide raids on unauthorized mining farms. In Tehran Province alone, authorities recently dismantled 104 illegal facilities and seized over 1,400 machines – equipment consuming enough power to supply nearly 10,000 households. Investigators have discovered mining rigs concealed in basements, tunnels, and even factory lines connected to subsidized electricity.

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Iran’s energy ministry has also introduced incentives for public cooperation. Citizens are now being offered rewards of one million toman (around $24) for reporting illegal mining equipment. The measure is part of a broader push to protect the grid and reclaim lost revenue from unlicensed operations.

Despite the crackdown, Iran remains one of the largest players in the global Bitcoin mining ecosystem, ranking fifth worldwide with roughly 4.2% of the network’s total hashrate, according to CoinLaw. The U.S. continues to dominate the field, followed by Kazakhstan, Russia, and Canada.

The crisis highlights a growing paradox for Iran: its subsidized power, originally designed to support domestic industry, has turned the country into a magnet for crypto miners – legal and illegal alike – placing increasing pressure on its already fragile energy infrastructure.

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