Iran continues to tighten its grip around illegal Bitcoin miners in the country. Successfully conducts raids against mining rigs and seizes Bitcoins. Iranian Police alleges that miners were illegitimately utilizing electricity of Tavanir plant which was provided to consumers at subsidized rates.
Since the crypto industry had been riding the Bull-Run, Iran had been strictly taking action against illegal miners. Recently, the Iranian Police had been conducting raids on a routine basis to apprehend illegal Bitcoin miners. In the most recent raid, the Police had apprehended several Bitcoin miners which were reportedly using subsidized electricity.
It was told by Mohammad Hassan Motavalizadeb, in charge of power facility, Tavanir, that he got complaints of high consumption of electricity. Upon inquiry he found out that miners were actively mining Bitcoins within the area and he sought police support to apprehend culprits. When police conducted the raid, it was found out that the culprits were illegally utilized subsidized electricity. Hassan told that the electricity was provided to the locals of the area at subsidized rates.
Hassan further pointed out that at least 95 MW of electricity was being utilized by illegal Bitcoin miners per hour. He stated that as per the rules and regulations, the Government had been charging 4,800 Iranian Rials (equivalent to US$ 0.11) per KWH from authorized miners. However, in order to avoid this payment, miners were using subsidized electricity which rate was much cheaper than that of 4,800 Rials.
It was in 2019 when Iran legalized crypto mining as well as give recognition to the crypto industry within the country. Since then the Iranian Government also seriously took note of the illegal mining farms. It was reported that since 2019, Iran had ceased at least 1620 illegal farms that were illegally conducting mining activities. It was also noted by the Iranian Government that these illegal miners were consuming approximately 250MW of subsidized electricity meant for ordinary consumers.
However, currently, the country had been going through a severe electricity shortage because of the winter season. The electricity shortage is also apparent in commercial cities of Iran as well, which also includes Tehran as well. Resultantly, Iran’s Energy Ministry also took strict action against the mining industry and cut down 600 MW of electricity supply to them.