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Canadian Bitcoin miner fined $7 million for building power plants without permission

Updated: Aug 31, 2024
Published: Oct 4, 2021
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Link Global, a bitcoin mining operator in Canada, is facing a fine of up to $7 million for installing power plants to run its miners without government permission. The company installed several power plants without complying with the law.

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The company had violated regulations

The mining operator could be fined up to $7 million after it set up a mining operation with power plants without Alberta government approval. Link Global began operations in Alberta, setting up four gas generators at Sturgeon County, near Edmonton, and another mine in Kirkwall. Reportedly, none of these complied with Alberta Utilities Commission regulations.

The case came to a head when neighboring communities complained about the noise the plants were creating. Authorities notified the company on Aug. 25 of this year that it had violated regulations and suspended operations at the two mining sites that were involved. Each of the sites had been operating under these conditions for more than a year.

How did they come up with $7 million?

The Alberta Utilities Commission divides the proposed penalties into two major parts: The first relates to the benefits derived from generating power. The other part has to do with the benefits obtained from mining Bitcoin with this power. The institution claims damages in this regard amount to two million dollars. This amount is estimated to be up to five million.

Link Global disputes the fines, stating that they are not based on its actual financial reports. The company is now moving bitcoin mining operations to other locations to comply with current regulations.

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