HomeNewsCanadian Bitcoin mining firm faces $5.6M penalty

Canadian Bitcoin mining firm faces $5.6M penalty

At times, the unavailability of the necessary permissions from the government can land companies in big financial trouble. Recently, a Canadian Bitcoin mining firm has to face heavy penalties for operating unauthorized power plants.

Link Global Technologies is a Canadian Bitcoin mining firm facing potential penalties due to the operation of unauthorized plants in Alberta. In fact, The Alberta Utilities Commission (AUC) has issued another enforcement submission against Link Global. Also, the enforcement staff has recommended several penalties for violations of Alberta’s legislative requirements.

Now, the province’s power utility regulator is seeking over 5 million CAD ($4 million). Moreover, it is seeking the amount from Link Global’s Bitcoin mining operations. The number is based on the calculations of Link Global’s alleged gross economic benefit for the two plants. Other than that, AUC is seeking $64,000 in two administrative penalties.

The AUC has estimated Link Global’s economic benefit at a more ‘conservative’ rate according to the document. In their words:

“more conservative generation rate of 1.2 Bitcoins per day” & “the more conservative of 95,000 TH of computing power versus 10 MW.”

The authority also noted that Link Global’s revenue source is mainly based on hosting or selling electricity to third-party digital asset miners.

Following the submission, Link Global CEO Stephen Jenkins issued a statement:

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

Initially, the AUC had asked Link Global to shut down operations in late August due to complaints of noise from local residents.

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