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.
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.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
Learn more about Consensus 2023, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.