US Senators express security concerns about Iran’s cryptocurrency mining industry
The cryptocurrency mining industry in Iran is facing criticism from US Senators Elizabeth Warren and Angus King, who view it as a threat to national security. In a letter sent to National Security Advisor Jake Sullivan, Defense Secretary Lloyd Austin, and Treasury Secretary Janet Yellen on May 1, the senators called on the Biden administration to provide information regarding the potential links between the Iranian government and local crypto miners. Warren and King believe that digital assets mined in Iran are being used to bypass US sanctions and fund terrorist organizations such as Hezbollah. They also allege that these funds were used to support Iran’s attack on Israel in April.
Iran has been under US sanctions, as well as those imposed by international bodies, since 1979. Earlier this year, the Office of Foreign Assets Control (OFAC) of the Department of the Treasury imposed sanctions on several entities involved in the illegal export of technology from multiple US companies to Iran. The letter stated that unless action is taken, Iran will continue to use crypto to fund attacks against Israel.
In the letter, the senators referred to a report that claimed the Iranian government preferred “newly minted” Bitcoin due to its lower traceability. It was also reported that Bitcoin miners in Iran generated $1 billion in revenue in 2021. Therefore, the senators have requested that US officials provide data on the revenue generated by Iranian crypto miners, the potential use of these funds in money laundering, and how they plan to address these threats to US national security.
Interestingly, despite the legalization of mining in 2019, the Iranian government has cracked down on the cryptocurrency mining sector on multiple occasions. In 2021, approximately 150,000 pieces of crypto-mining equipment were confiscated in response to concerns about electricity depletion. However, the equipment was released in January of this year.
