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FTX secretly lent Alameda Research $65B

Environmentalists sued the New York Public Service Commission (PSC) on Jan. 13 for allowing the takeover of a bitcoin mining plant. Plaintiff's argument that approval breaches 2019 New York climate legislation. The Climate Leadership and Community Protection Act aims to reduce 85% of statewide emissions by 2050 and achieve zero-emissions power by 2040, among other goals.

  • Jan 14, 2023 14:15
FTX secretly lent Alameda Research $65B

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The New York Public Service Commission (PSC) was sued by environmentalists on January 13 for allowing the takeover of a bitcoin mining factory that was located within the borders of the state. According to the complaint, the Public Service Commission broke state law when it approved the takeover.

The state Public Service Commission (PSC), which is responsible for regulating public utilities, reportedly gave its approval in September of 2022 for the conversion of the Fortistar North power plant into a cryptocurrency mining facility. This was reported by The Guardian. The Public Service Commission is the agency that is in charge of regulating public utilities.

The Canadian cryptocurrency mining company Digihost had planned to acquire the facility, which is located in Tonawanda, a city that is less than sixteen kilometers from Niagara Falls. Tonawanda is a city that can be found in the state of New York.

The complainant's main point is that the authorization violates New York's climate legislation that was enacted in 2019, and this is what they consider to be their strongest argument.

The Climate Leadership and Community Protection Act (CLCPA) has a number of objectives, one of which is to cut the state's emissions by 85 percent by the year 2050. This is just one of the many objectives. This is merely one of the many objectives that the act seeks to achieve. Another one of the goals is to completely do away with emissions produced by the electricity industry by the year 2040.

Earthjustice is the organization that will be representing the Sierra Club and the Clean Air Coalition of Western New York in this case. 

The organization known as Earthjustice is one that does not make a profit. In the complaint, they are making the argument that the Fortistar plant was only operated during the periods of time when there was a significant demand for power. For illustration, they are using instances in which there was severe weather as a case study.

If, on the other hand, it were to be converted into a facility for the mining of cryptocurrencies, it would be operational at all hours of the day and night, which would result in an increase in the emissions of greenhouse gases of up to 3,000 percent. Activists are of the opinion that environmental assessments need to be carried out whenever the state of New York analyzes proposed new projects.

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