Iranian police seized 7,000 computers involved in mining operations at an illegal cryptocurrency farm.
On Tuesday, authorities conducted their largest raid to curb nationwide mining. The confiscated computers were found in an abandoned factory outside the Iranian capital of Tehran.
According to Iranian state media, exorbitant energy consumption from crypto is the cause of the growing number of power outages across the country. As a result, miners have seen a continuous crackdown on their activities.
Iran continues crackdown
Late last month, the Iranian government shocked crypto miners with fines and a ban on bitcoin mining. The move was an effort to reduce the increasing number of power blackouts affecting cities. However, Iranian officials publicly blamed the blackouts on the energy consumption from rigs.
Iran has been a hub for crypto mining, following countries like China. According to Elliptic, a blockchain data collection firm, Iranian crypto mining accounts for almost 5% of mining globally. The industry brings in hundreds of thousands of dollars in annual revenue for the country.
In 2020, the situation in Iran was completely different. Previously, major Iranian power plants eagerly sold cheap electricity to miners to increase mining. At the time, the Iranian government even pushed for regulations to sustain and legalize the industry.
Nonetheless, Iranian-based miners are in a more difficult situation than ever. Last month, news broke of government spies infiltrating facilities to root out illegal operations. As a result, these pressurizing moves subsequently pushed mining farms to shut down voluntarily.
Mining under global scrutiny
While some speculate the recent Chinese crackdowns are to blame for the major plummet in the market, others see the silver lining.
While mining remains integral to the overall ethos of cryptocurrencies, its sustainability remains a concern to consumers and developers alike.