1,100 Unlawful Crypto Mining Farms Busted

EghtesadOnline: The Power Generation, Distribution and Transmission Company (Tavanir) has identified and shut 1,100 unlicensed crypto mining farms with the help of whistleblowers.

News ID: ۷۵۰۷۶۷

22 August 2020

Tavanir in July said it would reward whistleblowers who name unauthorized cryptocurrency miners to the relevant authorities. Rewards include 100 million rials ($480) for those who cooperate with energy officials in identifying the lawless mining centers.

However, the measure was unnecessary as Tavanir has been regularly monitoring consumption patterns of subscribers. But, "the company cannot detect all illegal farms solely by studying their consumption patterns," a Tavanir spokesman said.

Speaking to Fars News Agency, Mostafa Rajabi Mashhadi said some miners install equipment at industrial and agricultural units that are already operating and use high levels of subsidized electricity.

"Therefore Tavanir's monitoring reveals no significant change in consumption of this particular category," he said.

In July 2019 the government said it will recognize crypto currency mining as a legal industry. This was first welcomed by miners as a positive move, but many complained about the high power tariffs. Later they concealed their illegal lucrative operations and went underground to deceive utility companies.

As per earlier announcements, miners are charged 4,800 rials for one kilowatt-hour that is half the electricity export rate in autumn, winter and spring. However, future billings are planned to be based on 19,300 rials/kw, twice the price for exported electricity in summer (June to Sept). So far 624  mining farms have permits.