Iran’s Crypto Elite Accused of Trading Darkness for Digital Profits

Behind Iran’s rolling blackouts, a shadowy blockchain operation allegedly cashes in—turning off the lights while the mining rigs stay on. Meet the Khamenei-linked crypto cartel playing both sides of Iran’s energy crisis.

How it works: While citizens sweat in the dark, well-connected mining farms reportedly siphon subsidized electricity to mint Bitcoin—because nothing says ’decentralized revolution’ like old-school crony capitalism with a crypto twist.

The kicker? These operations allegedly funnel profits through offshore exchanges—proving that even in authoritarian regimes, the 1% always finds a way to make their bag. Just don’t call it financial innovation when the playbook’s straight from 20th century oligarchs.

Khamenei-linked cartel accused of misusing scarce resources

According to several reports from the country, the groups prioritize profitable crypto-mining operations and seeking vital foreign currency, while the Iranian populace is left to suffer the effects of the collapsing power grid. The turning point to what it is now was the sanctions imposed on the country by the United States, especially after they withdrew from the nuclear deal with Iran in 2019, and the reimposition of oil and banking sanctions.

After these events, reports of crypto mining farms being set up in Iran were at a high. Coincidentally, in the summer of 2019, when these reports became rife, severe power outages started to become a thing, with the entire country suffering as a result. According to several sources, the timing was not a coincidence.

Under the directive of Khamenei, the IRGC entered into a collaboration with Chinese partners, where they established mining operations to generate Bitcoin and other digital assets as a means to compensate for the country’s reduced access to US dollars.

These farms, which depended on high amounts of energy, suddenly became a primary source of the blackouts. According to reports, the IRGC, which serves as the pillar of the crypto mining entities, uses its power over the economy and security outfits to direct these operations. Reports mentioned that the IRGC, in collaboration with entities like Astan Quds Razavi, a charitable trust under the supervision of the Supreme Leader. These organizations FORM the cartel and allegedly divert state resources for their personal gains.

Iranian regime blames the general public for power outages

Iran officially recognized the crypto mining industry as legal in 2019, with its licensing being managed by the Ministry of Industry, Mines, and Trade. According to estimates, around 180,000 mining equipment are in use in the country, with 80,000 belonging to private entities. This leaves about 100,000 in the control of states or state-affiliated firms. This development, according to reports, allegedly allows the cartels to operate under a legitimate umbrella, diverting a big share of the country’s energy.

However, despite evidence of state-controlled entities draining the national grid, the regime has often blamed the general public for the power outages. They blame a rise in household consumption – a narrative that has not held up under scrutiny. While Iranians have been facing darkness and power outages, the IRGC has been working with the cartels to use the limited energy resources unchecked.

Reports also claim that anytime enforcement actions occur, they often target small unauthorized private miners in the country. According to these reports, the main reason behind these developments is a calculated strategy for Khamenei and the IRGC to enrich themselves.

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