Crypto-miners take down Iran electric grids, prompting crackdown

Cryptocurrency mining is a process in which specialized computers complete progressively more difficult calculations to verify transactions and thereby produce cryptocurrencies, the most popular of which is Bitcoin. (Shutterstock/File Photo)
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Updated 19 January 2021
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Crypto-miners take down Iran electric grids, prompting crackdown

  • Multiple cities have experienced blackouts and a halt to industrial work in recent weeks
  • Tehran offering $4,750 reward for informants who expose illegal cryptocurrency mining operations

LONDON: Iran has ordered a crackdown on cryptocurrency miners after blackouts in major cities were attributed to the excess toll the activity takes on the energy grid.

Parts of Tehran, as well as Mashhad and Tabriz, have experienced repeated blackouts in recent weeks, temporarily halting production lines and plunging the cities into darkness.

State electricity company Tavanir said it had temporarily halted all known crypto-mining operations, including a Chinese-Iranian mine in Rafsanjan that is reported to have been consuming 175 megawatt hours — enough electricity to power an average Western home for 17 years.

Cryptocurrency mining is a process in which specialized computers complete progressively more difficult calculations to verify transactions and thereby produce cryptocurrencies, the most popular of which is Bitcoin.

The process is extremely energy intensive, meaning that cryptocurrency mining is most profitable in locations with cheap energy.

Because of significant state subsidies and excess fuel reserves held by Iran due to sanctions, oil-fueled electricity is very cheap in the country — less than 1 cent per kilowatt hour.

This has massively fueled production of cryptocurrencies in Iran, to the extent that in 2020, the country was responsible for 8 percent of all the world’s Bitcoin production.

The effect of the crypto-mining on Iran’s grids has become such a problem that the government is now offering a $4,750 reward for tips on illegal crypto-mining locations.

At $35,000 each, the price of Bitcoin has reached record levels in recent weeks, making mining of the currency particularly attractive in a place with few economic opportunities such as Iran.

The appeal of Bitcoin and other cryptocurrencies is also relevant for states and groups that operate on the fringes of the global economy, such as Iran, Venezuela and North Korea, as well as terrorist groups.

Bitcoins can be traded outside the traditional banking system, allowing Iran to circumvent economic sanctions on its financial sectors, and terrorist groups such as Hezbollah and Daesh to trade on the black market anonymously.

In 2019, Iran’s President Hassan Rouhani announced that his country would launch its own cryptocurrency to circumvent US sanctions, but little else is known about the project.

Despite the difficulty in tracing cryptocurrency transactions, in 2018 the US sanctioned two Iranians who had been converting cryptocurrency into Iranian rials on behalf of hackers who had targeted American corporations, hospitals, universities and government agencies.


Arab, Muslim countries slam US ambassador’s remarks on Israel’s right to Middle East land

Updated 22 February 2026
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Arab, Muslim countries slam US ambassador’s remarks on Israel’s right to Middle East land

  • The backlash widened sharply on Sunday as more than a dozen Arab and Islamic governments issued a joint statement denouncing the US diplomat’s comments as “dangerous and inflammatory”

JERUSALEM: Arab and Islamic countries issued a joint condemnation on Sunday of remarks by US ambassador to Israel Mike Huckabee, who suggested Israel had a biblical right to a vast swath of the Middle East.
Huckabee, a former Baptist minister and a fervent Israel supporter, was speaking on the podcast of far-right commentator and Israel critic Tucker Carlson.
In an episode released Friday, Carlson pushed Huckabee on the meaning of a biblical verse sometimes interpreted as saying that Israel is entitled to the land between the river Nile in Egypt and the Euphrates in Syria and Iraq.
In response, Huckabee said: “It would be fine if they took it all.”
When pressed, however, he continued that Israel was “not asking to take all of that,” adding: “It was somewhat of a hyperbolic statement.”
The backlash widened sharply on Sunday as more than a dozen Arab and Islamic governments — alongside three major regional organizations — issued a joint statement denouncing the US diplomat’s comments as “dangerous and inflammatory.”
The statement, released by the United Arab Emirates’ foreign ministry, was signed by the UAE, Egypt, Jordan, Indonesia, Pakistan, Turkiye, Saudi Arabia, Qatar, Kuwait, Oman, Bahrain, Lebanon, Syria and the State of Palestine, as well as the Organization of Islamic Cooperation, the Arab League and the Gulf Cooperation Council.
They said the comments contravene the UN Charter and efforts to de-escalate the Gaza war and advance a political horizon for a comprehensive settlement.
Iran joined the chorus with its foreign ministry accusing Huckabee on X of revealing “American active complicity” in what it called Israel’s “expansionist wars of aggression” against Palestinians.
Earlier, several Arab states had issued unilateral condemnations.
Saudi Arabia described the ambassador’s words as “reckless” and “irresponsible,” while Jordan said it was “an assault on the sovereignty of the countries of the region.”
Kuwait decried what it called a “flagrant violation of the principles of international law,” while Oman said the comments “threatened the prospects for peace” and stability in the region.
Egypt’s foreign ministry reaffirmed “that Israel has no sovereignty over the occupied Palestinian territory or any other Arab lands.”
The Palestinian Authority said on X that Huckabee’s words “contradict US President Donald Trump’s rejection of (Israel) annexing the West Bank.”
On Saturday, Huckabee published two posts on X further clarifying his position on other topics touched upon in the interview, but did not address his remark about the biblical verse.
The speaker of the Israeli parliament, Amir Ohana, praised Huckabee on X for his general pro-Israel stance in the interview, and accused Carlson of “falsehoods and manipulations.”
Carlson has recently found himself facing accusations of antisemitism, particularly following a lengthy, uncritical interview with self-described white nationalist Nick Fuentes — a figure who has praised Hitler, denied the Holocaust and branded American Jews as disloyal.