US Bitcoin Corp, a North American Bitcoin mining firm, has been ordered to cease operations by a State Supreme Court Justice or face penalties of $10,000 per day.
The order is a follow-up to a temporary restraining order issued against the firm on December 1, which sought to stop the firm from operating as the city of Niagara Falls sought a preliminary injunction to force the company’s facility to comply with zoning laws governing energy-intensive industries.
The city charged the mining facility, based on Buffalo avenue, with violating these laws and creating “a public nuisance.”
The $10,000 fine will be in place until January 31 and will increase to $25,000 per day after that deadline until the case is fully settled.
Despite its historical popularity as a location for Bitcoin mining, regulation against the industry in New York state has been unfriendly.
In November, state Governor Kathy Hochul signed a moratorium ending the use of fossil fuels to mine Bitcoin in the region to meet the state’s economic development and climate goals.
Mohammad Ali is a fintech and cryptocurrency writer who has been covering the intersection of finance and technology for several years. Ali has a deep understanding of the financial industry and the ways in which technology is changing it, with a special focus on the rise of digital currencies and blockchain technology.
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