Iran’s government agency in charge of state property has released some hardware seized from an illegal crypto mining farm. Its top official explained that the agency was obligated to do so by a court in the Islamic Republic, where unauthorized miners have been blamed for power shortages.
Iranian authorities return confiscated mining rigs to their owners
Iran’s Organization for the Collection and Sale of State Property (OCSSOP) has begun returning to miners some of the mining devices seized in a raid on an underground crypto farm. It was ordered to do so by an Iranian court, the English-language business daily Financial Tribune reported.
Quoted by the country’s Ministry of Economy and Finance, Abdolmajid Eshtehadi, head of the organization, elaborated.
Currently, about 150,000 [units] of crypto-mining equipment are held by OCSSOP, the majority of which will be released following a judicial ruling. The machines have already been returned.
The official further elaborated that the Iranian Electricity Generation, Transmission and Distribution Company (Tavanir) needs to make a proposal on how the mining hardware can be used without damaging the national grid.
Iran legalized cryptocurrency mining in July 2019, but has since shut down its authorized coin minting operations several times due to power shortages during summer and winter, when electricity consumption spikes. It has also cracked down on Iranians mining outside the law.
Companies seeking to mine legally must obtain licenses and import permits from the Ministry of Industry, Mining and Trade. Equipment must be approved by the Iran Standard Organization, and miners must pay for electricity at export rates.
Crypto mining using natural gas or electricity intended for other purposes or for consumers is illegal in Iran. However, underground mining facilities powered by cheap, subsidized energy have multiplied, avoiding licenses that require payment of much higher tariffs.
In recent years, state-run Tavanir has cut power supplies to identified illegal mining facilities, confiscating their equipment and fining their operators for damage to the country’s power distribution grid.
Since 2020, the utility has found and closed 7,200 unauthorized crypto mining farms; in July 2022, it will take action against unauthorized crypto miners who, according to earlier estimates, burned 3.84 trillion rials ($16.5 million) in subsidized power It vowed to take strict action.
The release of the mining rigs came despite the Prosecutor General’s Office banning such moves until the Iranian parliament adopts a bill to address the problem of illegal mining. in August, the government
