• US Bitcoin Corp has been ordered to halt its crypto mining operations or pay a fine of $10,000 daily.
• If the miner continues operations after January 31, the penalty will increase to $25,000 daily.
• The attorney for US Bitcoin, John Bartolomei, has said that the company will appeal this decision at the State Supreme Court.
US Bitcoin Corp, a popular US-based crypto mining company, has been recently issued a temporary restraining order (TRO) by Supreme Court Justice Frank Sedita III. The restraining order requires the miner to comply with new zoning laws targeting industries that use large amounts of energy. Failure to abide by the order could result in a hefty fine of $10,000 daily.
The restraining order was issued after the City of Niagara Falls filed for a preliminary injunction against US Bitcoin Corp. The injunction requested that the miner comply with the new zoning laws or face penalties. Since then, the company has been trying to find a way to comply with the order, though it has yet to do so.
State Supreme Court Justice Edward Pace has now imposed an additional penalty for US Bitcoin Corp, should it continue operations after January 31st. If the miner does not halt its mining operations by that date, it must pay a hefty fine of $540,000 to Niagara Falls, dating back from December 9th. Furthermore, continuing operations after January 31st would result in a daily penalty of $25,000 until the case is determined.
The attorney for US Bitcoin, John Bartolomei, has said that the company will appeal this decision at the State Supreme Court. Meanwhile, the attorneys representing the city have asked justice Sedita to find US Bitcoin Corp in contempt of court for failing to abide by the TRO.
It remains to be seen whether US Bitcoin Corp will ultimately be able to continue its mining operations or if it will face steep penalties for failing to comply with the restraining order. In the meantime, the mining company’s attorney has expressed his intention to appeal the decision at the State Supreme Court in hopes of overturning the ruling. Only time will tell if US Bitcoin Corp will be able to keep its operations running or be forced to shut down.