Link Global Technologies, a Canadian-listed Bitcoin (BTC) miner, is facing potentially heavy fines for operating unauthorized power plants in Alberta.
The Alberta Public Utilities Commission (AUC), the regulator of the regional power grid, filed another enforcement action against Link Global on September 24, recommending that law enforcement officials impose additional penalties for violating Alberta law.
According to a document submitted to Cointelegraph, AUC law enforcement officials have recommended that Link Global pay about $2 million Canadian (CAD) ($1.6 million) in interest to financially benefit from illegal electricity generation.
The regulator is claiming more than C$5 million ($4 million) from Link Global’s bitcoin mining operations, based on AUC’s calculations of Link Global’s estimated aggregate economic benefits for the two sites. In addition, AUC is requesting an additional C$81,000 (US$64,000) in two administrative fines.
According to the document, AUC evaluated Link Global’s economic advantage based on “a more conservative generation rate of 1.2 bitcoins per day” and “a more conservative computing power of 95,000 THB for 10 megawatts.” Authorities have indicated that Link Global’s revenue stream is primarily based on hosting or selling power to third-party digital miners, “with a smaller share of internal mining revenue.”
An AUC spokesperson told Cointelegraph: “The report and advice from law enforcement officials are only a fraction of the information that will be reviewed and processed by the African Union Commission’s Board of Commissioners.” Link Global has received an extension to October 14, 2021 as the deadline for sending a response. “All of this information will be considered in an oral hearing before the final decision is made. The date for this hearing has not been set yet,” the spokesperson said.
Following the AUC presentation, Link Global CEO Stephen Jenkins released a statement on September 30 stating that the company had acknowledged the errors and made every effort to correct the errors:
Our company respects laws, people, and the environment, and we believe our representation to AUC will make that clear. […] I apologize to our contributors who do not deserve this. We will work tirelessly to ensure that the outcome is positive. ”
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Link Global did not immediately respond to Cointelegraph’s request for comment.
If enforced, the release would represent only the second issuance penalty ever imposed by the African Union Commission since awarding C$56 million in compensation to TransAlta Corporation’s power generator was approved in 2015.
As previously reported, AUC initially asked Link Global to close operations in late August after local residents complained about noise from a nearby power plant.