Canadian Link Global Technologies Is Facing Multi-Million Dollar Fine For Illegal Mining

2021-10-05 21:21:00
Illegal Power Generator

The Canadian bitcoin mining company Link Global Technologies (LGT), is facing a multi-million dollar fine for conducting illegal mining activities. Specifically, LGT is facing charges in Alberta for violating Canadian laws by operating unauthorized power sources in order to mine bitcoin.

What surprises many, is the magnitude of the comapny. Being that Link Global is part of the Canadian Securities Exchange, and one of the most prominent crypto miners in the country.

Moreover, the official power regulator of Alberta, The Alberta Utilities Commission (AUC) already issued LGT with an enforcement submission. It states that LGT must pay a fine of $1.6m, for making profit while using illegal electricity generators. Yet, the intentions of the AUC to fine Link Global Technologies doesn’t stop there.

The Alberta power regulator also requests Link Global to pay additional $4m. This is after they calculated the true financial gains from the two unauthorized plants. This is in addition to the $64.000 fine for violating two administrative rules.

The Reason

The strict economic disgorgement that the Alberta Utilities Commission imposes against Link Global is meant to serve as a message for others. Especially crypto miners. According to the report of the AUC, LGT gained substantial financial gain by using illegal power supply methods.

Additionally, the AUC also claims that Link Global was actually selling this illegally obtained power to third-party crypto miners.

The enforcement staff report and recommendations are only part of the information that the AUC tribunal panel of Commission members will further asses and consider. All of this information will be considered at an oral hearing before a final ruling is issued. The date of this hearing has not yet been scheduled.Alberta Utilities Commission | Official Statement

Surprisingly, the CEO of Link Global Technologies, Stephen Jenkins, admits the mistake. In addition, he vows to never repeat such a felony in the future.

Our business works to respect the laws, the people and the environment.  And we believe that our submission to the AUC will make this apparent. I apologize to our shareholders who do not deserve this. We will work tirelessly to ensure the outcome is positive.Stephen Jenkins | CEO of Link Global Technologies
Not The First Time

It seems like Link Global Technologies multi-million dollar fine for illegal mining is definitely not an accident. Especially if you consider that back in August, the AUC issued a ban of operations for Link Global, after noise complaints from local residents. The noise was coming from one of the power plants of LGT, which is most likely one of the two illegal power sources of the mining company.

If the authorities accept the financial retribution proposal by the AUC, Link Global will share the fate of TransAlta Corporation. Specifically, back in 2015, the AUC issued a $44.5m fine for the mining company for similar violations.

Meaning that if the accusation stands, which is very likely, Link Global will pay the second biggest mining fine in Canadian history.

 

 

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