The Canadian Bitcoin mining company Link Global faces a fine of 5.6 million US dollars

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Link Global Technologies, a Bitcoin (BTC) mining company listed on the Canadian Securities Exchange, faces significant fines for operating unauthorized power plants in the province of Alberta.

The Alberta Utilities Commission (AUC), the provincial energy company, issued another enforcement motion against Link Global on Sept. 24, with enforcement staff recommending multiple penalties for violating Alberta’s legal requirements.

According to a document submitted to Cointelegraph, enforcement staff recommended AUC Link Global to pay an economic levy of approximately 2 million Canadian dollars (CAD) ($ 1.6 million) for financial gains from unlawful power generation.

Regulator is demanding more than CAD 5 million ($ 4 million) from Link Global’s bitcoin mining operations based on AUC calculations of Link Global’s alleged gross economic profit for two facilities. In addition, the AUC is demanding an additional $ 81,000 ($ 64,000) in the form of two administrative fines.

According to the document, the AUC estimated the economic benefits of Link Global based on the “more conservative generation rate of 1.2 bitcoins per day” and “the more conservative of 95,000 TH of computing power versus 10 MW”. The agency found that Link Global’s revenue stream is primarily based on hosting or selling electricity to third party providers for digital asset miners, “with a lesser proportion of revenue coming from self-mining activities.”

“The report and recommendations from enforcement personnel are only part of the information that will be assessed and considered by the AUC judicial committee of commissioners,” an AUC spokesman told Cointelegraph. Link Global has received an extension to October 14, 2021 as the deadline for submitting its response. “All of this information will be examined in an oral hearing before a final decision is made. The date for this hearing has not yet been set, ”said the representative.

Following the filing of the AUC, Link Global CEO Stephen Jenkins issued a statement on Sept. 30 stating that the company acknowledged wrongdoing and worked hard to correct mistakes:

“Our business works to respect the law, people and the environment, and we believe our filing to AUC will make that clear. […] I apologize to our shareholders who do not deserve this. We will work tirelessly to ensure that the result is positive. “

Related: Bitcoin mining difficulty has risen 31% since July

Link Global did not immediately respond to Cointelegraph’s request for comment.

If applied, the disgorgement would be just the second disgorgement penalty ever imposed by the AUC after approving a $ 56 million settlement for power producer TransAlta Corporation in 2015.

As previously reported, the AUC initially asked Link Global to cease operations at the end of August after residents complained about the noise of a nearby power station.