Canadian Bitcoin mining firm Link Global faces $5.6M penalty

Canadian Bitcoin mining firm Link Global faces $5.6M penalty

Link Global Technologies is a Bitcoin mining company that is listed on the Canadian Securities Exchange. It faces major penalties for operating unlicensed power plants in Alberta.

The Alberta Utilities Commission, the province’s regulator of power utilities, issued a new enforcement submission on September 24 against Link Global. Enforcement staff recommended several penalties for violating Alberta’s legislative requirements.

Cointelegraph received a document from the AUC’s enforcement team recommending that Link Global pay an economic disgorgement amounting to approximately 2 million Canadian Dollars (CAD) ($1.6million) in order to reap the financial benefits of the illegal electricity generation.

Based on Link Global’s gross economic benefit, the AUC calculated that Link Global would receive over 5 million Canadian dollars ($4 million). AUC also seeks an additional 81,000CAD ($64,000), in two administrative penalties.

The document states that Link Global’s economic benefit was calculated by the AUC based on the “more conservative generation of 1.2 Bitcoins per hour” and the “more conservative of 95,000 TH computing power versus 10MW” revenue sources. Link Global also receives less revenue from self-mining.

A spokesperson for AUC stated that the report and recommendations of enforcement staff are just part of the information that will go to the AUC tribunal panel. Link Global was granted an extension for its deadline to respond by Oct. 14, 2021. “All of the information will be reviewed at an oral hearing before a final decision is made. “The date for this hearing is not yet set,” said the representative.

Stephen Jenkins, Link Global CEO, issued a statement Sept. 30 following the submission of the AUC. He stated that the company had acknowledged wrongdoings and is working hard to correct them.

“Our company is committed to protecting the environment, people, and laws. We believe our submission to AUC will prove this. […] We sincerely apologize to all shareholders for not being able to do this. We will continue to work hard to make sure the outcome is positive.”

Related: Bitcoin mining difficulty surges 31% since July

Cointelegraph reached out to Link Global for comment but they did not respond immediately.

The disgorgement, if it were to be applied, would be the second disgorgement penalty that the AUC has ever imposed after the approval of a 56 million Canadian dollar settlement for TransAlta Corporation’s electricity generator TransAlta Corporation in 2015.

The AUC requested Link Global to cease operations in August, after residents complained about the noise coming from a nearby power station.

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