On Friday, December 13, the Associated Press reported that the frequent power outages in Iran in recent months have “disrupted people’s lives and businesses.”
The news agency stated that while multiple factors, such as mismanagement, reduced energy reserves, ongoing droughts, budget deficits, and sanctions stemming from the Iranian regime’s nuclear activities, likely contribute to the power outages, some suspect that cryptocurrency mining is also playing a role.
The rise in Bitcoin prices has led some to suspect, as reported by the Associated Press, that organized cryptocurrency mining, which consumes significant amounts of electricity, has contributed to the recent outages in Iran.
The report cited comments made earlier this summer by Mostafa Rajabi, CEO of Iran’s state-owned electricity company, who said: “Unfortunately, some opportunistic and exploitative individuals are using subsidized electricity, public networks, and other unauthorized resources to mine cryptocurrencies.”
The Associated Press also quoted Masih Alavi, CEO of a government-licensed mining company called “Vira Miner,” who stated that determining energy consumption by miners is challenging, especially since they use virtual private networks (VPNs) that hide their locations.
The report noted that approximately three years ago, an estimate suggested that Iran had processed “$1 billion in Bitcoin transactions.” It added that with the increase in Bitcoin prices, this value has likely risen, coinciding with the power outages in Iran.
According to the Associated Press, the U.S. Treasury Department and Israel claim that Iran’s Islamic Revolutionary Guard Corps (IRGC) relies on cryptocurrencies to finance the regime’s proxy militant groups in the Middle East. Therefore, the IRGC may be involved in cryptocurrency mining farm activities.
Earlier, in May 2024, U.S. Senators Elizabeth Warren and Angus King wrote to senior officials in the Biden administration, urging a deeper investigation into the Iranian regime’s cryptocurrency activities. They expressed concerns that the regime may be using cryptocurrencies for money laundering, financing terrorism, and evading sanctions.
