Link Global, a bitcoin miner in Canada, faces a fine of up to $7 million for installing power stations to operate miners without government permission. The company has installed several power plants without following legal procedures and claims that if the penalty is carried out, it will deal a fatal blow to its finances.
Global Connect facing Hefty Fine
A Canadian bitcoin miner can be fined up to $7 million after setting up a mining operation with power plants without permission from the Alberta government. Link Global began operations in Alberta by constructing four gas generators at a site in Sturgeon County, near Edmonton, and also another mine in Kirkwall. According to reports, none of these sites have complied with the Alberta Utilities Commission rule.
The issue was triggered when neighboring communities complained about the noise the sites made. The authorities informed the company that it had not complied with its requirements earlier this year, on August 25, and halted operations of the two mining sites involved. Each of the sites has been operating for over a year under these conditions.
Two types of penalties, the CEO reassures shareholders
The Alberta Utilities Commission divides the proposed penalties into two main parts: The first relates to the benefits obtained for power generation. The foundation claims that damages in this regard amount to two million dollars. The other part relates to the advantages obtained for mining Bitcoin using this power. This amount is up to five million according to estimates.
Link Global is contesting the fines, stating that they are not based on the company’s actual financial reports. It is now in the process of moving these bitcoin mining operations to other locations, to comply with current regulations. Stephen Jenkins, CEO of Link Global, told local media:
Link has followed orders from the AUC and believes that what the enforcement staff is suggesting is my punishment…I apologize to our contributors who don’t deserve it. We will work tirelessly to ensure that the outcome is positive.
The company and its shareholders, who are in the process of building two new bitcoin miners in the region, will have to wait until October 14, when their fate and final fine will be decided at a hearing.
What do you think of Alberta’s regulation on power plants? Tell us in the comments section below.
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