Unlicensed Crypto Mining in Iran: How the IRGC Controls the Industry

Unlicensed Crypto Mining in Iran: How the IRGC Controls the Industry Nov, 14 2025

Iran Energy Theft Calculator

How Much Electricity Are IRGC Mining Operations Using?

The IRGC controls most of Iran's crypto mining infrastructure. Calculate how this electricity use impacts ordinary citizens.

Real-world data: One known IRGC mining site in Rafsanjan uses 175 megawatts of electricity—enough to power 150,000 homes. This is the equivalent of a medium-sized European country's electricity consumption.

When Iran’s lights go out in the middle of winter, families huddle under blankets while factories shut down. But in hidden military zones, thousands of powerful computers hum nonstop-mining Bitcoin, consuming more electricity than entire cities. This isn’t illegal because it’s hidden. It’s illegal because it’s state-sanctioned.

The Energy Theft Behind Iran’s Blackouts

Iran’s power grid is collapsing. Cities like Tehran, Isfahan, and Mashhad face daily outages lasting 8 to 12 hours. Hospitals use backup generators. Schools cancel classes. But while civilians struggle, massive mining farms run 24/7-powered by electricity meant for homes and businesses.

These aren’t basement operations run by hobbyists. They’re industrial-scale facilities, each with tens of thousands of ASIC miners, clustered inside IRGC-controlled zones. One known site in Rafsanjan, Kerman Province, alone draws 175 megawatts-enough to power a medium-sized European country. That’s not a typo. One farm. One location. Enough to light up 150,000 homes.

The cost? Iranian citizens pay for it. Literally. The government subsidizes electricity at less than 1 cent per kilowatt-hour. But private miners? They’re forced to pay 10 times that. Meanwhile, IRGC-linked operations don’t pay at all. They just take it.

Energy Minister Ali Abadi, a former IRGC commander, called this theft “an ugly and unpleasant act.” But his past makes it clear: this isn’t corruption. It’s policy.

How the IRGC Built a Crypto Cartel

In 2019, Iran officially legalized cryptocurrency mining. On paper, it looked like reform. In reality, it was a takeover.

The Ministry of Industry, Mines, and Trade issued licenses-but only to those who agreed to sell all mined coins to the Central Bank of Iran at fixed, below-market rates. Private miners couldn’t keep profits. They couldn’t even cash out easily. The rules were designed to kill competition.

The IRGC didn’t need a license. They didn’t need permission. They had power.

By 2020, IRGC-affiliated entities-like Astan Quds Razavi, a massive religious foundation directly under Supreme Leader Khamenei-began building mining farms inside military bases and special economic zones. These locations are off-limits to inspectors. No audits. No bills. No oversight.

They partnered with Chinese firms to import mining hardware. They built private power lines to bypass the national grid. They even got parliamentary approval in 2022 to construct their own electricity plants. The goal? Total control over the entire supply chain: hardware, power, and crypto.

Estimates suggest 180,000 mining devices operate in Iran. About 100,000 of them belong to the IRGC or its proxies. That’s more than half the country’s mining power-controlled by a single military organization.

A massive IRGC-controlled mining farm with rows of ASIC miners, stealing electricity from homes, seen through a transparent grid map.

Crypto as a Sanctions-Busting Tool

Iran’s economy has been under heavy sanctions since 2018. Banks can’t receive dollars. Companies can’t trade internationally. The rial collapsed. The regime needed a way out.

Cryptocurrency became the answer.

Unlike bank transfers, Bitcoin transactions don’t need SWIFT. They don’t require intermediaries. They leave no paper trail. A single wallet can receive millions in crypto from anywhere in the world-and convert it into cash through local exchanges.

U.S. Treasury and Israeli intelligence have tracked Bitcoin wallets tied directly to IRGC operations. Funds from these wallets have flowed to Hezbollah in Lebanon, to Houthi rebels in Yemen, to militias in Syria. Crypto mining isn’t just about profit. It’s about survival.

The IRGC doesn’t mine Bitcoin to get rich. They mine it to fund war.

Two Systems, One Country

There are two Irans when it comes to crypto mining.

One is the official version: licensed miners who pay high electricity rates, sell coins to the central bank, and risk arrest if they try to sell outside the system. Many have quit. Others operate in the shadows, using VPNs to access foreign exchanges like Nobitex.

The other is the IRGC version: no bills, no rules, no consequences. They control the power. They control the hardware. They control the flow of money.

This isn’t a loophole. It’s a hierarchy. The state doesn’t crack down on unlicensed mining. It *is* the unlicensed mining.

Even when the Central Bank blocked all crypto-to-rial transactions in late 2024, they didn’t shut down mining. They just moved it behind their own API. By January 2025, they began selectively unblocking exchanges-only if they gave the government full access to user data. Control, not elimination, is the goal.

A split scene: a man with a broken miner on the left, an IRGC Bitcoin bunker raining digital coins on the right.

The Human Cost

In the city of Kermanshah, a factory owner told a local journalist his machines shut down three days a week because the grid couldn’t handle demand. His workers got paid half their wages. He couldn’t afford to buy diesel for his generator.

Meanwhile, just 30 kilometers away, an IRGC mining farm ran full tilt. No outages. No limits. Just noise, heat, and electricity flowing from the grid they never paid for.

Children study by candlelight. Elderly people can’t use oxygen machines. Hospitals cancel surgeries. All because a military organization decided that mining Bitcoin was more important than keeping the lights on.

The world talks about crypto as a tool for freedom. In Iran, it’s a weapon of control.

What’s Next?

Iran’s crypto mining industry isn’t shrinking. It’s growing.

New mining zones are being built near oil fields, where excess natural gas can be burned to generate cheap power. The IRGC is even experimenting with solar-powered farms in desert regions.

The Central Bank is pushing for a state-controlled digital currency, which would give them even more power to track and restrict financial activity.

Meanwhile, ordinary Iranians keep using VPNs, peer-to-peer trades, and underground exchanges to survive. But they’re not mining. They’re not profiting. They’re just trying to get by.

The system isn’t broken. It’s working exactly as designed.

Is cryptocurrency mining legal in Iran?

Technically, yes-but only under strict government control. The Iranian government legalized mining in 2019, but only for those who sell their coins to the Central Bank and pay high electricity rates. In practice, only IRGC-linked entities operate without these restrictions. Most private miners are forced underground or shut down entirely.

Who controls most of Iran’s crypto mining?

The Islamic Revolutionary Guard Corps (IRGC) and affiliated organizations like Astan Quds Razavi control an estimated 50-60% of all mining hardware in Iran. These groups operate in military zones with direct access to subsidized electricity, no regulatory oversight, and armed protection. Private miners make up the rest, but they face high costs and heavy restrictions.

Why does Iran allow crypto mining if it causes blackouts?

Because the government doesn’t see it as a problem-it sees it as a solution. Crypto mining helps Iran bypass international sanctions by generating hard currency outside the traditional banking system. The IRGC uses the profits to fund proxy groups, import banned goods, and stabilize the regime. The blackouts are a side effect, not a failure.

Can regular Iranians profit from crypto mining?

It’s nearly impossible. Private miners must pay high electricity rates and sell their coins to the Central Bank at fixed, low prices. They’re also blocked from using domestic banking systems to convert crypto to rials. Most who try use VPNs to access foreign exchanges, but that’s risky and technically complex. The system is designed to favor state actors, not citizens.

How does Iran’s crypto mining compare to other countries?

Iran is now one of the world’s top 10 Bitcoin producers. Unlike the U.S. or Kazakhstan, where mining is mostly private and regulated, Iran’s industry is dominated by a single military entity using state resources. The scale is smaller than China’s pre-ban operations, but the level of state control and energy theft is unmatched. No other country uses crypto mining as a sanctioned tool of sanctions evasion and military funding.

18 Comments

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    Laura Lauwereins

    November 14, 2025 AT 23:39

    So let me get this straight - families are freezing in Tehran while the IRGC runs Bitcoin farms like it’s a luxury resort? And the kicker? They don’t even pay for the power.
    It’s not corruption. It’s just capitalism with a military uniform.
    Someone needs to leak those energy bills. Or at least a thermal image of those farms.
    Also, why does no one talk about how this makes crypto look like a tool of oppression instead of liberation?
    Just… wow.

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    Gaurang Kulkarni

    November 15, 2025 AT 20:26

    Iran’s power grid is collapsing because the IRGC is literally stealing electricity at scale and turning it into digital gold while ordinary people use candles to read
    the state doesn’t care about blackouts because blackouts are a feature not a bug it keeps the population distracted and dependent
    the real crime isn’t mining it’s that the regime turned energy theft into a national policy
    the fact that they built private power lines and got parliamentary approval to build their own plants proves this was planned from the start
    they didn’t exploit a loophole they rewrote the rules and called it legality
    and now they’re using crypto to fund terrorists and bypass sanctions because why use banks when you can just print your own money with GPUs
    the world calls this innovation Iran calls it survival
    the only thing missing is a propaganda video of Khamenei mining Bitcoin in a silk robe

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    Nidhi Gaur

    November 17, 2025 AT 01:40

    omg this is wild but also so predictable
    they legalized mining so they could own it
    private miners get taxed into oblivion while the military gets free power
    it’s like if your landlord let themselves use your electricity while telling you to turn off the AC
    and then they use that electricity to buy weapons
    the irony is thick enough to spread on toast
    also can we talk about how the Central Bank blocked crypto-to-rial but didn’t shut down mining??
    they just want to control the flow not stop it
    classic authoritarian move

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    Usnish Guha

    November 18, 2025 AT 07:04

    You people don’t understand the real issue here
    It’s not about electricity theft or even sanctions evasion
    It’s about the complete collapse of the rule of law
    When a military organization operates outside the legal system and is granted de facto sovereignty over critical infrastructure you don’t have a state you have a gang with nukes
    And the fact that the Energy Minister is a former IRGC commander proves this isn’t corruption it’s institutionalized predation
    Iran isn’t an economy it’s a rent-seeking machine disguised as a nation
    And crypto is just the latest resource they’re looting
    Stop calling it mining call it digital looting

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    rahul saha

    November 19, 2025 AT 16:40

    so like… if you think about it
    the IRGC is basically running a crypto version of the Soviet Union’s black market economy
    except instead of selling jeans and radios they’re selling Bitcoin
    and instead of hiding behind curtains they’re hiding behind military bases
    and instead of being punished they get medals
    it’s almost poetic in its absurdity
    the regime is using blockchain tech to enforce total control
    irony levels: max
    also i’m pretty sure the Chinese hardware suppliers know exactly what they’re selling
    they’re not innocent bystanders
    they’re enablers with delivery trucks

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    Marcia Birgen

    November 21, 2025 AT 16:24

    My heart breaks for the families in Kermanshah studying by candlelight while those mining rigs hum away like they’re in a sci-fi movie.
    But I also want to say - this is why we need global awareness.
    Every time someone buys Bitcoin mined in Iran, they’re unknowingly funding war.
    Let’s not demonize crypto - let’s demand transparency.
    We can support decentralization without supporting oppression.
    And yes - I’m adding a ‘No Iran-mined BTC’ tag to my wallet.
    🌱💙

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    Jerrad Kyle

    November 23, 2025 AT 00:24

    Let me paint you a picture: imagine if your city’s power grid was being siphoned by a shadowy cabal that didn’t pay a dime - while your kid’s hospital generator sputtered out at 2 a.m.
    That’s not dystopia. That’s Tehran.
    The IRGC didn’t just exploit the system - they redefined it.
    They turned a technological revolution into a weapon of statecraft.
    And the world? We’re still treating this like a technical glitch instead of a geopolitical emergency.
    It’s not just about energy theft.
    It’s about the normalization of tyranny disguised as innovation.
    We need sanctions on mining hardware exports.
    We need blockchain audits.
    We need to stop pretending this is ‘just crypto’.
    This is war by algorithm.

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    Usama Ahmad

    November 24, 2025 AT 07:49

    bro this is insane but honestly not surprising
    in a lot of places where the government is corrupt they just take the easiest thing to steal
    in iran it’s electricity and crypto
    the fact that they built their own power plants just for mining shows how serious they are
    and honestly i feel bad for private miners
    they’re stuck between paying too much or getting arrested
    the system is rigged from the start
    no wonder people use vpn to trade
    it’s the only way to survive

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    Nathan Ross

    November 25, 2025 AT 16:41

    While the humanitarian implications are deeply concerning, one must not conflate the operational mechanics of state-controlled cryptocurrency mining with the broader philosophical underpinnings of decentralized digital currency.
    The IRGC’s actions represent a perversion of the original ethos of Bitcoin, which was predicated on decentralization, transparency, and resistance to centralized control.
    What we observe here is not cryptocurrency in action - but rather, state-sponsored energy theft under the guise of technological modernization.
    The solution lies not in banning crypto, but in enforcing global accountability protocols for energy sourcing in mining operations.
    One might argue that this is the first documented case of a sovereign entity weaponizing blockchain infrastructure to circumvent international financial sanctions - a precedent with profound implications for global governance.

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    garrett goggin

    November 26, 2025 AT 09:26

    Ok but what if this is all a psyop?
    What if the IRGC isn’t mining Bitcoin - what if they’re just making it look like they are?
    What if the whole thing is a distraction so the West keeps focusing on Iran’s ‘crypto blackouts’ while they’re actually using the grid to power secret nuclear facilities?
    And the ‘175 megawatt farm’? Probably just a decoy with some old PCs and a fan.
    They’re using the narrative to make us paranoid so we don’t notice they’re building underground missile silos under the mining rigs.
    Also - did you know the US has been mining crypto in Nevada since 2016 to fund drone strikes?
    Who’s the real villain here?
    ...I’m not saying it’s the CIA but I’m also not saying it isn’t.

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    Bill Henry

    November 27, 2025 AT 11:29

    just saw a video of a kid in Iran using a flashlight to do homework while a mining farm 20 miles away was glowing like a neon sign
    we talk about crypto like it’s about freedom
    but here it’s literally the opposite
    it’s the rich getting richer by stealing from the poor
    and the world just shrugs
    we need to boycott any exchange that doesn’t verify where their Bitcoin comes from
    no more blind trust
    every coin has a story
    and this one is bloody

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    Jess Zafarris

    November 28, 2025 AT 22:17

    It’s fascinating how the same technology that was supposed to dismantle centralized power is now being weaponized by the most centralized entity on the planet.
    Bitcoin was meant to be a rebellion.
    Now it’s the regime’s balance sheet.
    And the worst part? The world keeps calling it ‘innovation’ instead of ‘theft’.
    They didn’t hack the system.
    They became the system.
    And now they’re using it to fund militias across the Middle East.
    Next time someone says ‘crypto is the future’ - ask them which future they mean.
    One where the powerless get lights.
    Or one where the powerful get richer while the lights go out.

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    jesani amit

    November 29, 2025 AT 18:24

    you know what really gets me
    it’s not even the money
    it’s the fact that these mining farms run 24/7 like nothing’s wrong
    while hospitals cancel surgeries
    while kids can’t study after dark
    while grandmas can’t use their oxygen machines
    and the people running those farms? they don’t even feel guilty
    they’re just doing their job
    the system made them do it
    and the worst part? the world still doesn’t care
    we’re all so busy arguing about crypto prices
    while real people are freezing
    we need to stop treating this like a tech story
    it’s a human rights crisis
    and if we don’t speak up
    we’re just as guilty as the ones pulling the plug

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    Peter Rossiter

    November 29, 2025 AT 21:43

    IRGC mining farms are basically state-sponsored power vampires
    they don’t pay for electricity
    they don’t pay for hardware
    they don’t pay for consequences
    they just take
    and the rest of Iran pays the price
    simple as that
    no drama
    no debate
    just theft
    and the government calls it policy
    so yeah
    it’s legal
    but it’s still a crime

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    Mike Gransky

    December 1, 2025 AT 02:20

    There’s a chilling symmetry here: Bitcoin was designed to be censorship-resistant. But in Iran, the censorship is now the system itself.
    The IRGC doesn’t block crypto - they own it.
    They don’t shut down miners - they become the miners.
    They don’t fear decentralization - they’ve hijacked it.
    This isn’t a failure of regulation.
    This is the endpoint of authoritarianism adapting to technology.
    And if we don’t act, this model will spread.
    Because when a state can turn energy theft into digital currency, it doesn’t need banks.
    It just needs power lines.

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    Ella Davies

    December 2, 2025 AT 17:38

    I read this and just sat there.
    No words.
    Just… silence.
    Because how do you respond to something so systematically cruel?
    It’s not just theft.
    It’s the erasure of dignity.
    Children studying by candlelight while machines they can’t afford run in the dark.
    That’s not capitalism.
    That’s not even corruption.
    That’s just… evil dressed in code.

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    Henry Lu

    December 3, 2025 AT 17:45

    you think this is bad? wait till you see how they’re using the mined btc to buy russian drones
    and the chinese companies that sold them the rigs? they’re laughing all the way to the bank
    and the west? still buying crypto like it’s some kind of digital gold rush
    we’re all complicit
    and the fact that you’re even reading this means you’re part of the machine
    so stop pretending you’re innocent
    you’re just a spectator with a wallet

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    Jerrad Kyle

    December 4, 2025 AT 16:56

    And here’s the real kicker: the IRGC doesn’t even need to cash out their Bitcoin.
    They trade it directly for weapons, fuel, and tech through shadow networks in Turkey, UAE, and China.
    Every transaction is irreversible. Every wallet is untraceable.
    They don’t need SWIFT.
    They don’t need banks.
    They just need GPUs and a power grid they stole.
    And the world? Still treating crypto like a financial tool instead of a geopolitical weapon.
    That’s the real failure.

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