Bitcoin Mining Facility In Niagara Falls Was Ordered To Shut Down

A Bitcoin mining facility in Niagara Falls, New York, has been ordered to close owing to a zoning regulation violation.

According to a U.S. Securities and Exchange Commission filing dated Friday, the city sent Bit Digital a stop and desist notice over a site owned and maintained by one of its hosting partners, Blockfusion.

The notice directed Blockfusion to cease any cryptocurrency mining or associated operations until it complied with the city’s zoning legislation and other rules.

According to the complaint, Blockfusion informed Bit Digital that the ordinance went into force on October 1 after a related moratorium ended on September 30.

According to the ABC affiliate in Buffalo, N.Y., the city’s mayor, Robert Restaino, the ban is intended to prevent any Bitcoin facility from growing in the region, while new zoning legislation will combat noise pollution.

Bit Digital claimed in an October 7 release that the municipal notice essentially prohibited the facility from doing any cryptocurrency mining or associated operations until Blockfusion was in compliance with local zoning rules.

“Blockfusion has further advised that it is preparing applications for new permits based on the Ordinance’s new standards and that the permits may take several months to process. Bit Digital management continues to monitor the situation. On October 5, 2022, Bit Digital further noticed Blockfusion that it expects it to comply with directives of the Notice.”

An explosion in May knocked off electricity to thousands of equipment at the plant, but power has now been restored, according to Bit Digital.

Blockfusion’s Niagara Falls location hosts approximately 17% of Bit Digital’s mining fleet, with 13,980 active machines as of October 6.

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