95% of Iran’s Crypto Mining Machines Run Illegally: Report

Highlights:

• Akbar Hasan Beklou said most of Iran’s 427,000 mining machines are illegal.
• Beklou added that Tehran Province shut 104 farms and seized 1,465 machines.
• Iran still produces 4.2% of Bitcoin’s network power, ranking fifth globally.

Iran is facing growing trouble with illegal crypto mining. Officials revealed that around 95% of the country’s 427,000 mining machines are running without proper licenses. This situation has caused serious worries about the stability of the national power system.

JUST IN: 🇮🇷 Iran becomes the world’s 4th largest crypto mining hub but over 95% of its 427,000 rigs operate illegally, draining 1,400 MW of power and straining the grid. pic.twitter.com/JOvSbNvRf4

— BNN (@brainsnewsnets) November 2, 2025

CEO of the Tehran Province Electricity Distribution Company, Akbar Hasan Beklou, said on Sunday that Iran has become the fourth-largest crypto mining hub in the world. He explained that cheap electricity prices have made the country a “paradise for illegal miners,” rapidly draining its energy resources.

These illegal mining operations use more than 1,400 megawatts of electricity nonstop, equal to the power used by several big cities. This heavy usage is putting the national grid under pressure and increasing the risk of power cuts for regular consumers. 

Tehran Province Sees Surge in Illegal Crypto Mining

Beklou said that since the government started acting against illegal crypto mining, 104 mining farms were found in Tehran Province. Officials also seized 1,465 mining machines. These machines used about 3,359 kilowatts of electricity, equal to the power for 10,000 homes. This put heavy pressure on the national grid and affected electricity for homes and factories. Many were hidden as factories. This caused more power theft, wasted cheap electricity, and left less energy for legal businesses.

Beklou said many areas in Tehran Province, including Pakdasht, Firuzkuh, Malard, Shahre Qods, Kahrizak, and some industrial zones, have illegal mining. Officials found 80 farms with 1,300 machines in the first six months, consuming power for 8,000 homes. He added that miners hide machines by digging tunnels and burying them, while tapping cheap industrial power, which makes detection very difficult. Special inspection teams are now working with security forces to find and shut down more secret setups before they strain the country’s power system.

Government Introduces Cash Reward Scheme

Iranian authorities have launched a new plan to get public help against illegal crypto mining. In August, the government announced a cash reward for anyone who reports unregistered mining sites. Mostafa Rajabi Mashhadi, CEO of the state-run utility Tavanir, said people would get 1 million toman, about $24, for each illegal mining machine they report.

The goal of this plan is to involve citizens in finding hidden miners that inspectors struggle to locate, especially in rural or industrial areas with limited monitoring. Officials believe public support can help reduce illegal electricity use across the country.

You can mine 1 Bitcoin in Iran for $1,300 and sell it for $108,000.

Is Iran nice this time of year? 🤔 pic.twitter.com/u8vYuUjeZU

— Bitcoin Archive (@BTC_Archive) October 19, 2025

Iran Among Top Global Mining Contributors

Even with strict rules, Iran is still one of the top crypto mining countries. A report by CoinLaw in June said Iran makes up 4.2% of Bitcoin’s total network power, ranking fifth in the world. The United States is first with 44%, followed by Kazakhstan with 12%, Russia with 10.5%, and Canada with 9%.