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Crypto Mining Under Fire in Iran’s Power Struggle

Iran Accuses Cryptocurrency Miners of Worsening National Energy Shortages

August 16, 2025
in Mining, News
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Iran is facing a deepening energy crisis that has sparked public outrage and widespread protests. Residents across the country are blaming crypto mining operations, particularly those linked to the Islamic Revolutionary Guard Corps (IRGC), for draining the national power grid. These operations, allegedly designed to evade international sanctions, have consumed a significant portion of Iran’s electricity, worsening an already dire situation.

The crisis has been exacerbated by a record-breaking drought and soaring summer temperatures reaching up to 40 °C. Lake Urmia, once one of the world’s largest saltwater lakes, has now transformed into a salt-encrusted wasteland. Experts warn that nearby towns may face complete desiccation by the end of summer. In Tehran, government buildings have been forced to shut down intermittently to conserve energy, leaving workers struggling in stifling conditions.

In Babolsar, demonstrators gathered outside a power station, demanding basic utilities. Viral footage showed hospital staff using handheld fans and chemotherapy wards plunged into darkness. Protesters chanted slogans like “water, electricity, life – these are our indisputable rights” and “death to incompetence,” highlighting growing frustration with government mismanagement.

Public Backlash and Political Tensions Escalate

The crisis has taken a toll on small businesses, with residents like Hamid, an ice cream vendor in Khomam, recounting how extended outages ruined his stock and forced him to join protests. While power cuts have slightly eased in some areas, resentment continues to build.

President Masoud Pezeshkian has acknowledged the severity of the crisis, calling it “serious and unimaginable.” He also criticized Israeli Prime Minister Benjamin Netanyahu’s remarks urging Iranians to rise against their government. Meanwhile, engineer Mohammad Mohebbi claims that 5% of the national grid is now controlled by the IRGC for crypto mining. Environmental expert Kaveh Madani warns that Iran is in “water bankruptcy mode,” a result of decades of unsustainable self-sufficiency policies.

Frequently Asked Questions (FAQs)

  • What is causing Iran’s energy crisis?

A combination of crypto mining, government mismanagement, drought, and extreme heat has strained Iran’s electricity supply.

  • Why are people protesting?

Citizens are demanding reliable access to water and electricity, blaming the government and crypto operations for the shortages.

  • How is the government responding?

Officials have acknowledged the crisis, but critics argue that their actions are insufficient and that mismanagement continues to worsen the situation.

Tags: CryptocurrencyMining

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