• US Bitcoin Corp – a North American Bitcoin mining firm – has been ordered to shut down its operations by a State Supreme Court Justice, or face a fine of $10,000 per day.
• If the miner continues to operate through the end of January, the fine will increase to $25,000 per day.
• US Bitcoin is facing a potential fine of $540,000 if it does not comply with the court order.
US Bitcoin Corp, a North American Bitcoin mining firm, is facing potential fines of up to $540,000 if it does not comply with the court order to shut down its operations by the end of January. This order comes from State Supreme Court Justice Edward Pace, as a follow-up to Supreme Court Justice Frank Sedita III’s temporary restraining order issued against the firm on December 1.
The Falls have sought a preliminary injunction to prevent US Bitcoin from continuing to operate without a license. US Bitcoin has been mining Bitcoin without a license since May 2019. The Niagara County Supreme Court has granted the Falls a permanent injunction that requires US Bitcoin to cease operations and pay a penalty of $10,000 per day if it does not comply with the order.
The court order states that should US Bitcoin continue to operate through the end of January, the penalty would increase to $25,000 per day. US Bitcoin has also been ordered to pay all legal costs associated with the case.
US Bitcoin has argued that it should not be required to obtain a license as its operations are exempt from the local law. The court ruled that US Bitcoin was not exempt and that its operations would pose a threat to public health, safety and welfare if it continued to operate without a license.
US Bitcoin’s operations could have a significant impact on the Falls’ environment, as it would consume a large amount of energy for its operations. US Bitcoin has also failed to provide the Falls with an adequate plan to monitor and reduce the environmental impacts of its operations.
The Falls have also argued that US Bitcoin’s operations could disrupt the power grid in the area, as it draws a large amount of energy from the local utility company. US Bitcoin has failed to provide the Falls with evidence that it can adequately manage the power grid in the area.
The court’s decision has significant implications for US Bitcoin and the future of Bitcoin mining in the region. US Bitcoin has been ordered to cease operations or face hefty fines and legal costs. It remains to be seen whether US Bitcoin will comply with the court order or continue to challenge the decision.