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US Bitcoin Corp has been ordered to halt its crypto mining operations or pay a fine of $10,000 per day. If the miner continues to operate after January 31, the fine will increase to $25,000 per day.
US mining company sentenced to pay a daily fine of $10,000
A State Supreme Court judge has ordered US Bitcoin Corp to halt operations or pay heavy penalties. According to to Judge Edward Pace, the sanctions would follow a temporary restraining order (TRO) imposed against the mining company by Supreme Court Justice Frank Sedita III.
The restraining order against US Bitcoin Corp was issued after Falls filed a preliminary injunction requiring the miner to comply with new zoning laws targeting energy-intensive industries.
According to Judge Pace, if the mining company does not stop its mining operations by January 31, it will have to pay $540,000 to Niagara Falls on February 1, effective December 9. The judge also informed the lawyers representing the company that the fine would increase. to $25,000 per day for operations made after January 31 until the case is determined.
US Bitcoin attorney John Bartolomei has said that the company will appeal this decision in the State Supreme Court. On the other hand, lawyers representing the city have asked Judge Sedita to hold US Bitcoin Corp in contempt of court after failing to comply with the TRO that ordered them to halt their operations on Buffalo Avenue.
The restraining order was issued on December 1, and the city claimed the mining activities were “a public nuisance” and continued to violate the city’s Zoning Code. The restraining order directed US Bitcoin Corp to shut down its mining activities until the city receives the result of a preliminary injunction seeking to shut down three crypto mining facilities.
Crypto Regulations in New York
Crypto mining regulations in New York have been strict even though New York City Mayor Eric Adams is a bitcoin bull. After being elected, Adams said that he would receive his first three paychecks in Bitcoin.
However, the governor of the state has not been pro-crypto. Kathy Hochul recently signed a moratorium that seeks to end the use of fossil fuels to mine Bitcoin within the state. Hochul noted that this measure would ensure that New York meets the state’s climate and economic development goals.
However, it seems that miners using renewable energy have not been spared. The US Bitcoin Corp website notes that its Niagara Falls facility used 90% clean energy, but this has not convinced the city to support operations of the mining facility.
Mayor Adams has also previously opposed crypto mining activities in the state. However, he later said that he would urge the state governor to reconsider the bill banning fossil fuel-powered mining activities. Adams noted that he wanted to support mining activities because of the future of the industry.
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