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Iran Offers $24 Reward for Reporting Illegal Crypto Mining

Aug 16, 2024
  1. Reasons for the Reward Program
  2. Scope of the Problem
  3. Global Crypto Mining Situation

Iran has introduced a monetary reward for reporting illegal crypto mining. This step is taken in an attempt to cope with power shortages due to extreme heat.

Reasons for the Reward Program

Iran announced a reward of 1 million toman (about $24) for each report of illegal crypto mining to combat power shortages during extreme heat. Temperatures in some parts of the country have reached 113 degrees Fahrenheit (45 degrees Celsius), putting a severe strain on the power grid.

Opportunistic individuals have been exploiting subsidized electricity and public networks to mine cryptocurrencies without proper authorization.Tavanir CEO Mostafa Rajabi Mashhadi

Scope of the Problem

Iranian authorities have already discovered 230,000 illegal crypto-mining rigs consuming up to 900 megawatts of power. This is equivalent to the consumption of a province with 1.4 million residents. It creates significant disruptions in power supply, especially in extreme temperatures.

Global Crypto Mining Situation

Crypto mining is an energy-intensive process using specialized computers to solve cryptographic puzzles. The most well-known cryptocurrency mined in this way is Bitcoin. This April, Bitcoin rewards were halved, leading to financial losses for many miners. In some countries, like Venezuela, crypto mining has been banned due to excessive energy consumption.

Iran is actively combating illegal crypto mining by offering rewards for reports on such incidents. However, the issue of crypto mining and related energy consumption remains relevant worldwide.

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