CRYPTO

Canadian Bitcoin mining firm Link faces $ 5.6 million fine

Bitcoin (BTC) mining company Link Global Technologies, listed on the Canadian Securities Exchange, is facing major potential fines for operating an unauthorized power plant in the province of Alberta.

The Alberta Utilities Commission (AUC), the province’s power utility regulator, issued Sept. 24 filing of another application against Link Global, which recommended several fines for enforcement workers for violating Alberta’s legal requirements.

According to a document shared with Cointelegraph, AUC enforcement staff recommended that Link Global should pay about 2 2 million (CAD) (AD 1.6 million) in economic isolation for financial gain from illegal power generation.

The regulator has asked for 5 million CAD (4 million) from Link Global’s bitcoin mining operations, which calculates the total economic benefits for Link Global’s two plants based on AUC’s calculations. In addition, AUC is seeking an additional 81,000 CAD (64,000) in two administrative fines.

According to the document, AUC estimated Link Global’s economic advantage based on “more conservative production rate of 1.2 bitcoins per day” and “more conservative than 95,000 TH per 10 MW”. Authorities noted that Link Global’s revenue source is primarily based on hosting or selling electricity to third-party digital asset mining, “with a small fraction of the revenue coming from self-mining activities.”

A spokesman for the AUC told Cointelegraph, “The reports and recommendations of the implementing staff are part of the information that will be evaluated and considered by the members of the AUC Tribunal Commission.” Link Global has received an extension until October 14, 2021, as its response submission deadline. “All this information will be considered in the oral hearing before the final verdict is issued. The date of this hearing has not been fixed yet, ”the representative said.

Following AUC’s submission, Link Global CEO Stephen Jenkins subsequently issued a statement on September 30 stating that the company had acknowledged the mistake and was working hard to correct it:

“Our business works to respect the law, the people and the environment and we believe that our submission to the AUC will make this clear. […] I apologize to our shareholders who do not deserve it. We will work tirelessly to ensure that the results are positive. ”

Related: The problem of bitcoin mining has increased by 31% since July

Link Global did not immediately respond to Cointelegraph’s request for comment.

If implemented, it would be the second disarmament penalty the AUC has imposed since approving a মিল 56 million CAD settlement for the power-generating Transalta Corporation in 2015.

As previously reported, the AUC initially asked Link Global to stop operations in late August when local residents complained of noise at a nearby power plant.