Iran seized nearly a thousand computers that were used to extract Bitcoin illegally

After detecting an unusual peak in energy consumption, the Iranian authorities seized nearly a thousand computers used to destroy cryptocurrency, according to the state media of the country.


Authorities discovered two bitcoin companies in abandoned factories in Yazd province, which caused a seven percent increase in the country's power consumption this month. Central bank of Iran banned cryptocurrencies last year, referring to concerns about money laundering. According to RadioFreeEurope, officials have said that the practice makes the local electricity grid "unstable" and warned that people involved in the practice could be cut off.

Cryptocurrency is "mined" because powerful computers solve math problems, a task that requires a lot of power. Iran subsidizes its power, keeping prices low, which seems to be a reason why miners have been active in the country. Access to cryptocurrency also seems to be help residents avoid American imposed bank sanctions.

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