If US Bitcoin does not cease operations by the end of January, it could face a $540,000 fine.
A State Supreme Court Justice has ordered US Bitcoin Corp, a North American Bitcoin mining firm, to cease operations or face a $10,000 per day fine.
The fine will increase to $25,000 per day if the miner continues to operate through the end of January.
The order from Justice Edward Pace, as reported by the Lockport Journal on Thursday, is a follow-up to Supreme Court Justice Frank Sedita III’s temporary restraining order issued against the firm on December 1.
The Falls sought a preliminary injunction to force the company’s facility to comply with zoning laws governing energy-intensive industries, and the latter justice sought to halt operations. The city charged the Buffalo Avenue mining facility with violating these laws and causing a “public nuisance.”
Pace stated that the $10,000 fine will be in effect until January 31. According to John P. Bartolomei, an attorney for US Bitcoin, the fine will rise to $25,000 per day after the deadline until the case is resolved. Bartolomei objected to the decision and stated that he would appeal it to the State Supreme Court Appellate Division Fourth Department.
“If (the cryptocurrency mining operation) has not been shut down by January 31, then a check for $540,000 should be delivered to the city of Niagara Falls on February 1,” Pace said. The $540,000 in payments is equivalent to a $10,000 penalty per day from December 9 to January 31.
Despite its historical popularity as a location for Bitcoin mining, New York state’s regulatory environment has not been friendly.
In November, state governor Kathy Hochul signed legislation prohibiting the use of fossil fuels in Bitcoin mining in the region. The decision was made primarily to achieve the state’s economic development and climate goals. According to the company’s website, US Bitcoin’s Niagra Falls facility is 90% powered by zero-emissions electricity – which hasn’t satisfied the Falls’ lawyers.
New York City Mayor Eric Adams, a proponent of cryptocurrency, has previously stated his opposition to Bitcoin mining. Out of concern for the industry’s future growth, he later promised to urge Governor Hochul to veto the bill prohibiting fossil-fuel-based mining activity.
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