Iranian police have seized 7,000 mining machines at an illegal cryptocurrency mining farm

According to Reuters, Iran continues its war on illegal cryptocurrency mining, reportedly seizing 7,000 rigs from an abandoned factory. This is the largest storage so far of the energy-consuming machines that have exacerbated the power outage in Iran.

An illegal cryptocurrency mining farm has been busted by the Iranian authorities

The latest move is in line with Iran’s crackdown on illegal Bitcoin mining activities.

General Hossein Rahimi, Tehran police chief, revealed that:

“The computer miners were found at an abandoned factory in Iran’s capital. It was used to carry out illegal cryptocurrency mining activities.”

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The police chief of Tehran, Brigadier General Hossein Rahimi

The latest seizure is the largest ever carried out by Iranian authorities. Back in January, the Iranian government confiscated over 1,500 unlicensed crypto mining farms. In the same month, authorities seized 45,000 bitcoin mining rigs.

According to Iran, the alleged bitcoin mining activities have affected the country’s electricity supply. At the end of May, Iran banned the mining of cryptocurrencies like Bitcoin for nearly four months as part of an effort to reduce the incidence of power blackouts blamed by officials on surging electricity demand during the searingly hot and dry summer.

The process of mining cryptocurrency consumes a lot of energy, often relying on fossil fuel-generated electricity, which is abundant in Iran. According to blockchain analytics firm Elliptic, around 4.5% of all bitcoin mining takes place in Iran, giving it hundreds of million dollars in revenue from cryptocurrencies that can be used to lessen the impact of U.S. sanctions.

While Iran is clamping down on illegal bitcoin mining activities, China is waging a nationwide crackdown on the sector. Regions such as Xinjiang, Mongolia, Qinghai, and Yunnan have issued notices to miners to stop working. As a result, the crackdown on Chinese bitcoin miners has resulted in a sharp drop in hashrate by almost 50%.

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