CEO Resigns After Illegal Cryptomining Operations Uncovered at TSE Premises

EghtesadOnline: The CEO of Tehran Stock Exchange Ali Sahraee submitted his resignation after unregistered cryptocurrency mining equipment was discovered in the TSE premises.

News ID: ۷۸۷۰۹۷

02 October 2021

Reports about illegal crypto mining units had been making the rounds and was soon confirmed by the Securities and Exchange Organization, IRNA reported.

Mahmoud Goudarzi was appointed as TSE caretaker.

The reports gained public attention given the sensitivity of the matter and the fact that crypto mining has nothing to do with the TSE’s functioning.

Mostafa Beheshti, the SEO executive deputy, said the units  were not owned by a particular person, however, “such activity is beyond the TSE’s purview and those in charge must be accountable”.

Sahraee, however, linked the cryptomining operations to R&D plans by TSE in the past, rejecting allegations that the TSE was seeking to profit from the undeclared mining operations.

The SEO in a notice said such activity was incompatible with the articles of association of the TSE and the issue is now under investigation by its legal department.

The regulator recalled that there was no mention of the TSE’s cryptomining in its financial reports, adding that relevant officials have been summoned.

Mining virtual currency is legal in Iran and miners are allowed to operate under rules approved by the government in July 2019.

While cryptomining is accepted by the government as legal, illegal farms have cropped up with increasing speed using subsidized electricity because they must pay much higher tariffs if they operate with a permit.

Energy Ministry data show a steep rise in electricity consumption in the past several months. After the unauthorized TSE cryptomining was officially confirmed the Iran Power Generation, Distribution and Transmission Company (Tavanir) said it will conduct its own probe to determine the transgression.