Cryptocurrency miner US Bitcoin Corp has reached a tentative agreement with the city of Niagara Falls that will allow it to reopen its mining farm in that city, according to a local press report. A state Supreme Court judge ordered the closure of his facility in early March. The deal still requires city council approval.
State Supreme Court Justice Edward Pace ordered the plant closed after “weeks of contentious negotiations” between the city and US Bitcoin over the wording of the order. The order enforced a ruling by another state supreme court judge ordering operations to cease while the city sought an injunction to enforce new city ordinances affecting the plant.
Pace held US Bitcoin in contempt of court for ignoring the initial order and imposed fines backdated to December 9, when it was initially ordered to shut down. Those fines will total more than $1 million, according to the report.
JUST IN: US Bitcoin Corp. Expected to Settle With City to Resume Mining in Niagara Falls. pic.twitter.com/AGvfJiG3gX
— Crypto Avanza (@AvanzaCrypto) April 5, 2023
The company will now have to pay $150,000 in fines to the city, $180,000 to reimburse legal fees, and reapplication fees. In addition, US Bitcoin will have to take measures to reduce noise at the facility, such as building a noise-dampening wall and submitting to third-party monitoring.
US Bitcoin is in the process of merging with Canadian miner Hut 8 in a deal announced last February. It also has facilities in Texas and Nebraska. According to its website, US Bitcoin uses approximately 90% “zero emissions electricity” at its New York plant.
New York state has placed a two-year moratorium on new test-of-work mining operations and on license renewals for existing ones, unless they run on 100% renewable energy. In June, the state attorney general issued a warning to investors about the risks of investing in cryptocurrencies.
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