Blockfusion's Crypto Mine in Niagara Falls Shut Down Due to Zoning Ordinances

As soon as the city's moratorium on the industry was lifted, Blockfusion was ordered to shut down over zoning issues.

AccessTimeIconOct 11, 2022 at 1:12 p.m. UTC
Updated Oct 11, 2022 at 2:08 p.m. UTC

The city of Niagara Falls in New York state, which has been the epicenter of a fight over bitcoin (BTC) mining and its impact on local environments and communities, ordered miner Blockfusion to shut down its operations, citing violations to the city's zoning code.

Bit Digital (BTBT), a mining firm that hosts 17% of its machines at Blockfusion's site in Niagara Falls, received the notice just four days after a moratorium on the industry was lifted on Sept. 30, the firm said on Tuesday. The notice ordered Blockfusion to "cease and desist from any cryptocurrency mining or related operations at the facility" until it complies with city zoning laws.

The notice actually came into effect just a day after the moratorium was lifted. The hosting firm is applying for new permits, a process which might take months, Bit Digital cited Blockfusion as saying.

Neither Bit Digital nor the mayor's office could be reached for comment at the time of publication.

In December 2021, Niagara Falls implemented a moratorium on bitcoin mining so the city could figure out rules involving the industry. The state of New York passed a similar measure in June.

Residents are upset about noise coming from the bitcoin mines, especially one run by U.S. Bitcoin Corp., which is close to a residential area.

The Blockfusion site suffered from an explosion in May, such that Bit Digital's machines went offline. Power was restored to the site in September, said Bit Digital.


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Eliza Gkritsi

Eliza Gkritsi is a CoinDesk contributor focused on the intersection of crypto and AI.