"Will this mining company be the next victim of bankruptcy after Core Scientific?"
A State Supreme Court judge has ordered North American Bitcoin (BTC) mining company US Bitcoin Corp to stop their operations if they don't want to face a $10,000 penalty that will increase by $25,000 every day if they still refuse to do so.
Judge Edward Pace took such action after Supreme Court Judge Frank Sedita lll issued a temporary restraining order against the company on December 1, 2022.
The judiciary has sought to stop the company by imposing restrictions on mining facilities and forcing them to comply with zoning laws*.
*The process of dividing land in a municipality into zones (for example housing or industrial) where certain land uses are allowed or prohibited.
Meanwhile, the company's lawyer, John P. Bartolomei objected to Pace's decision to double the $25,000 fine if US Bitcoin Corp continues its operations even after January 31, 2023.
According to Pace's statement, a check for the fine will be sent to the city of Niagara Falls on February 1 for $540,000, which includes a penalty of $10,000 per day from December 9 to January 31.
Earlier in November, Kathy Hochul, the state's governor signed a moratorium aimed at reducing BTC mining through ending the use of fossil fuels to complement economic development goals.
Meanwhile, New York City Mayor Eric Adams also opposed BTC mining by urging the governor to enact a bill to ban fossil fuel-based mining.
