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Power outages rekindle controversies over Bitcoin mining in Iran

Maryam Sinaiee
Maryam Sinaiee

Iran International

Dec 21, 2024, 13:44 GMT+0Updated: 12:01 GMT+0
Illegal crypto-mining equipment seized by Iranian Police in Sanandaj, March 2023
Illegal crypto-mining equipment seized by Iranian Police in Sanandaj, March 2023

Rolling power outages that have brought the country to a standstill in many areas has once again sparked controversies over the role of ‘illegal’ Bitcoin mining in overburdening the electricity grid.

While underscoring that illegal bitcoin mining was not the sole reason for the current energy crisis, Iran's minister of energy, Abbas Aliabadi, told reporters after a cabinet meeting Wednesday that citizens who provide the government with information on unauthorized mining activities would receive a cash prize.

“I will not disclose the amount of the bounty but it will be considerable,” Aliabadi said.

When reporters asked if certain economic enterprises or individuals organized illegal crypto-mining activities, Aliabadi responded that authorities had discovered both large-scale organized and domestic activities. “I don’t have a figure to announce now but there has been a considerable number of them,” he said.

Mostafa Rajabi, the CEO of Iran's government-owned energy company, TAVANIR, in a meeting with judiciary officials on December 2 urged the Judiciary to take appropriate action against cryptocurrency miners using highly subsidized electricity for personal gain. Currently, there is no dedicated legislation against cryptocurrency mining with subsidized energy.

Iran recognized cryptocurrency mining as a legal industry in 2018. In June 2019, however, authorities blamed illegal cryptocurrency mining for an unusual seven percent spike in electricity usage.

Bitcoin mining, which has a high carbon footprint, is usually carried out in high-tech data centers making huge demands on the electricity grid due to the many computers required to process and verify transactions before they are recorded on the cryptocurrency ‘blockchain.’

Consequently, the use of subsidized industrial electricity for mining was banned and authorities said they had seized around 1,000 mining machines from two mining farms at two derelict factories in Yazd Province.

The media also reported crypto-mining at some state-sponsored establishments such as mosques that pay highly reduced rates for energy.

In January 2021, some energy industry officials again blamed illegal crypto-mining for power outages in the capital Tehran, and elsewhere.

Some political activists and journalists alleged that “a military entity”, presumably the Revolutionary Guards, had established a joint 175-megawatt bitcoin mine in collaboration with Chinese investors at Rafsanjan Special Economic Zone (RSEZ) in Kerman Province, which benefitted from cheap electricity tariffs offered to those mining cryptocurrencies.

But experts say the power supply crisis has much deeper roots than cryptomining including the dilapidation of power plants and failure to store enough fuel for running them in winter.

“The Blockchain network is so transparent that it shows every country’s mining share. Iran's share of the whole Bitcoin network (both authorized and illegal) has dropped to under 0.1 percent,” an Iranian cryptocurrency expert behind Coinicap Telegram channel said in a tweet on December 16.

Some figures offered about the number of Bitcoins mined legally and illegally in Iran by Omid Ghaibaf, the spokesman of the ministry of industries in September 2022 suggested that Iran had a share of around eight percent in the global Bitcoin mining.

Iran's power outages got much worse in August during the country’s most sever heatwaves in fifty years and have developed into an energy crisis that has forced the government to fully or partially shut down schools, universities, government offices in most areas of the country in the past few days. Only four provinces out of the 31 have remained unaffected by the closures so far.

The outages are also seriously affecting large and small industries, including the steel industry. According to Iranian media daytime supply to many industrial compounds was cut off to decrease the demand on the national grid.

“The damages resulting from power outages in the country amount to over $25b a year,” Bargh News, a news website dedicated to the electricity industry, wrote last week, calling the current situation a “super-crisis”.

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Iran recruits children to attack Israeli targets in Europe - Bloomberg

Dec 21, 2024, 11:45 GMT+0

Attacks targeting Jewish and Israeli institutions in Europe this year reveal a growing trend of Iran-affiliated groups recruiting local criminals, including minors, Bloomberg reported Saturday.

"The incidents show how the war between Israel and Iran’s proxies across the Middle East is also driving Tehran to escalate its covert operations in Europe — and that is rattling governments already concerned that the conflict is stirring tension between communities divided over immigration," the report said.

Incidents include a 15-year-old in Stockholm taking a taxi with a loaded gun heading toward the Israeli embassy and a 13-year-old in Gothenburg shooting at the offices of the Israeli defense firm Elbit Systems.

This fall, Swedish and Norwegian security agencies warned of Iranian-backed operations. In response, Norway temporarily raised its terror alert to high in October, armed its police, and introduced border controls with Sweden.

In early October, Iran International exclusively reported that Tehran enlisted criminals to carry out armed attacks on Israeli embassies in Stockholm and Copenhagen, coinciding with its extensive missile barrage against Israel, according to a Swedish police source and another informed source.

Shots were fired at the Israeli embassy in Stockholm that same week, followed by two explosions near Israel’s embassy in central Copenhagen in the early hours of Wednesday. No injuries were reported.

Two Swedish teenagers, aged 16 and 19, were later arrested in connection with the incidents. Authorities did not immediately release details about their identities. A Swedish police source told Iran International that evidence found during the preliminary investigation pointed to the Islamic Republic’s involvement.

Earlier, in May, Swedish authorities arrested two teenage boys, aged 14 and 15, after a shooting near the Israeli embassy. At the time, Sweden’s intelligence agency accused Tehran of recruiting gang members to attack Israeli interests in the country.

A Swedish insider speaking to Iran International stated that investigations revealed the group behind the May attack was also “directed by agents linked to the Islamic Republic.”

According to separate statements last year by Säpo (Sweden’s intelligence agency) and Mossad, the Swedish criminal group Foxtrot was among those recruited by Tehran. The group, led by Rawa Majid, a Swedish citizen of Kurdish origin allegedly detained in Iran, is conducting sabotage operations on behalf of Tehran.

The Islamic Republic has never acknowledged recruiting criminals for operations outside its borders, yet its leaders have repeatedly expressed support for attacks on Israeli interests globally.

Iranian embassy staff member killed in Damascus, Tehran reports

Dec 21, 2024, 11:38 GMT+0

The spokesperson for Iran's Foreign Ministry said Saturday that a local employee of Iran's embassy in Damascus was killed last week after being shot in his vehicle in the city.

Esmaeil Baghaei said that Davood Bitaraf was killed by "terrorists" and added that the Syrian transitional government is responsible for "identifying, prosecuting, and punishing the perpetrators of this crime."

"The Ministry of Foreign Affairs is seriously pursuing the matter through appropriate channels and various diplomatic and international avenues," Baghaei added.

In an interview published Friday, Syria's de facto new leader, Ahmed al-Sharaa, said Iran’s influence in the region has been significantly diminished following the fall of its ally, President Bashar al-Assad. The interview with Asharq Al-Awsat comes after Sharaa's radical Sunni Islamist group, Hayat al-Tahrir Sham (HTS), swiftly defeated Assad's forces this month.

Sharaa said that Syria's opposition had “set the Iranian project in the region back by 40 years,” signaling a major shift in Syria’s stance toward Iran.

“By removing Iranian militias and closing Syria to Iranian influence, we’ve served the region’s interests—achieving what diplomacy and external pressure could not, with minimal losses,” he said.

Iran's Islamic government has been shaken by recent developments in Syria, where it had supported Assad's regime since anti-government protests began in 2011. Its withdrawal from Syria follows setbacks faced by its other ally, Hezbollah, in Lebanon.

Iran seeks release of national charged in US troop deaths

Dec 21, 2024, 08:51 GMT+0

Iran's is trying to secure the release of Mohammad Abedini, who was arrested at Milan airport in connection with a drone strike in Jordan earlier this year that killed US troops, IRGC-affiliated Tasnim News Agency reported Saturday.

"The lack of official notification to the Iranian embassy and the denial of access to Abedini, an Iranian citizen, is a clear example of abduction," Tasnim wrote.

The US Justice Department on Monday charged Abedini and another Iranian, Mahdi Mohammad Sadeghi, with conspiring to export sensitive US technology to Iran’s Revolutionary Guards, including navigation systems for military drones linked to the deaths of three US service members.

Dual US-Iranian national Mahdi Mohammad Sadeghi, 42, a resident of Natick, Massachusetts, and Abedini, 38, of Tehran, were charged with violating US export control and sanctions laws.

Abedini is also accused of providing material support to the Islamic Revolutionary Guard Corps (IRGC), a designated foreign terrorist organization, leading to the deaths of three US soldiers in a January drone attack on a military base in Jordan.

At the time, the US Department of Defense attributed the attack to Kata'ib Hezbollah, an Iranian-backed Iraqi militia. It was the deadliest assault on US troops since the Oct. 7 Hamas attack on Israel ignited a broader conflict involving Israel and groups aligned with Tehran.

Sadeghi was arrested in Massachusetts, while Abedini was detained in Italy at the request of US authorities. Both face up to 20 years in prison, with Abedini also facing charges that could carry a life sentence.

Tasnim also quoted a university classmate of Abedini as saying, "Mohammad is the CEO of San'at Danesh Rahpouyan Aflak (SDRA) in Iran. This company operates in the field of precision measurement equipment, with its products having various applications, including medical and sports uses. Abedini was also the director of a Swiss company named Illumove SA, which specialized in motion capture equipment. All activities of these companies were conducted under the legal and tax oversight of the Swiss government."

"These devices, due to their advanced technology, have multifunctional capabilities. The company's products, after being legally marketed in Iran, can be purchased and used by any individual or entity. However, the US government, based on unfounded claims that these devices were used in drones involved in the mentioned attack, has initiated legal proceedings and arrested these individuals," the friend added.

According to court filings, Abedini founded San’at Danesh Rahpooyan Aflak Co. (SDRA), an Iranian company that manufactures the Sepehr Navigation System, which is used in IRGC military drones, as well as in cruise and ballistic missiles. Sadeghi, a former founder of a Massachusetts technology company, is accused of conspiring to obtain US-origin components through illicit channels for SDRA, in violation of export laws.

Investigators found that SDRA’s navigation systems were key components in the Shahed drones used in the January 28 attack on the Tower 22 base in Jordan, which killed three service members and injured over 40 others.

The US government is currently pursuing Abedini’s extradition from Italy.

Iran accounts for most global executions in 2024

Dec 21, 2024, 08:22 GMT+0

Iran led the world in executions this year, with at least 800 documented cases as of December 1, according to the Death Penalty Information Center (DPI).

"Despite the overall global trend towards abolition, total known executions worldwide increased for the third consecutive year, led by Iran, Saudi Arabia, and Iraq," according to recent data from the DPI.

Nonviolent resistance efforts have started in response to Iran's ongoing use of the death penalty, as reported by the non-profit organization (NPO). One example is the weekly “No Death Penalty Tuesday” hunger strike by Iranian prisoners. This movement, first called “Black Tuesdays,” began on January 30, 2024. It was launched by 10 political prisoners in Karaj’s Ghezel Hesar Prison after several political prisoners were executed in January and weekly group executions occurred at the prison.

On Thursday, the United States sanctioned Iran’s Ghezel Hesar Prison, where hundreds of dissidents have faced torture and execution over the years.

“This prison saw severe human rights abuses, including cruel, inhuman, and degrading treatment of individuals in Iran who tried to exercise their right to free expression,” said US Secretary of State Antony Blinken on Thursday.

Earlier this year, the United States also sanctioned officials from Iran’s Prisons Organization for their role in suppressing protests after Mahsa Amini’s death in custody in September 2022.

Biden and Trump made big mistakes on Iran, Democratic congressman says

Dec 21, 2024, 04:37 GMT+0
•
Negar Mojtahedi

Presidents Joe Biden and Donald Trump both failed to halt Iran’s march toward nuclear weapons, Representative Brad Sherman, one of the strongest Democratic voices in the US Congress opposing the Islamic Republic told Iran International.

A House Representative for 28 years and counting - much of that time as a senior member of the House Foreign Affairs committee - Sherman has disagreed with both presidents from both parties on their Iran policies.

An outspoken critic of Iran's Islamic rulers, Sherman champions legislation criticizing their treatment of the Iranian people and tightening sanctions.

The representative for swish Malibu and Bel Air in Los Angeles was one of a small handful of democrats that voted against the 2015 Joint Comprehensive Plan of Action (JCPOA), an agreement to limit the Iranian nuclear program in return for sanctions relief.

There had to be a better deal, he said.

“I disagreed with the JCPOA, but then under Trump, there was less intelligence being gathered by the IAEA and no diminution, " Sherman said of the UN nuclear watchdog which inspects Iranian facilities.

"While he put more pressure on the regime, he didn't slow down the nuclear program. And then we see Biden also not slowing down the nuclear program,” Sherman told the Eye for Iran podcast.

The Democratic congressman acknowledged the frustrations of some Iranian- American democrats who voted for Trump in November to apply maximum pressure on Iran, but said the president-elect's tough talk didn’t succeed either.

“I know opponents of the regime tend to like Trump's bravado and rhetorical stance, and certainly he shows more emotion against the regime than Biden does. But neither of them have stopped the centrifuges. Neither of them have stopped the murder of anyone who dares to raise their voice .”

The E3, a diplomatic coalition comprising of Germany, Britain and France released a statement Tuesday, expressing concern over Iran’s increased uranium enrichments, calling on Tehran to reverse its nuclear advancements.

The outgoing US Secretary of State Antony Blinken, addressing the Council of Foreign relations on Wednesday, said the clerical establishment may consider a nuclear weapon after setbacks in the region.

Blinken referred to Israel's ability to damage Tehran’s proxies and Iran’s military and defense capabilities in a direct strike in October.

The top US diplomat also said there’s still a chance for the incoming president to negotiate with Iran.

"I think there is the prospect of negotiations," Blinken said at the Council on Foreign Relations in New York, "I don't think that a nuclear weapon is inevitable."

But Sherman said the traditional Democratic view of showing restraint in negotiations is a big mistake when it comes to dealing with Iran.

“There are those in the Biden administration who think that by doing a little bit less, by some forbearance, they'll be able to negotiate,” said Sherman “No, this is a regime where if you're going to negotiate, you must do it from strength.”

Tougher Sanctions

To start, Sherman wants tougher sanctions on Iranian exports.

“We have now tougher sanctions on Russian exports than we have on Iran.”

America must redouble their efforts to curb Iran’s nuclear program according to Sherman, who also said the US should fund covert democracy groups fighting to topple the clerical establishment. He declined to elaborate.

“I've certainly supported everything we've done to help Democratic forces, and some of that is classified.”

While Sherman supports Republican President-elect Donald Trump's so-called negotiating through strength, he believes the Iranian system is determined to build a bomb.

“As long as there's an Islamic Republic of Iran, it will be a country seeking nuclear weapons.”

You can watch the full episode of Eye for Iran featuring congressman Brad Sherman on YouTube. Or you can listen on Spotify, Apple, CastBox or Amazon.