Pennsylvania faces legal action over its alleged failure to protect residents from carbon dioxide emissions produced by a crypto mining operation, according to court documents.
Save Carbon County, an environmental NGO based in Pennsylvania, filed a lawsuit against Stronghold Digital Mining in state court on Tuesday. The lawsuit accuses the company of burning waste coal and tires to power its crypto mining activities, resulting in environmental harm.
The mining operation, located in northeastern Pennsylvania, is accused of causing significant environmental damage through its energy-intensive Bitcoin proof-of-work process.
The lawsuit names Pennsylvania state as a defendant, marking the first instance of the state being sued for permitting crypto mines, thus allegedly violating citizens’ rights to a clean environment.
Stronghold Digital Mining is alleged to emit six million tons of carbon dioxide annually. Despite this, Pennsylvania has not taken action to regulate or advocate for less energy-intensive mining methods, such as “proof of stake” verification.
Save Carbon County alleges that Stronghold’s actions constitute public nuisance, public liability, and negligence, and seeks compensation for pollution and environmental damage caused by crypto mining.
Stronghold Digital Mining denies the accusations, stating that it is engaged in environmental cleanup efforts in the area.
The company acquired Panther Creek in 2021 to conduct cryptocurrency mining, but has faced multiple violations related to unpermitted air pollution. In addition to using coal waste, Stronghold has resorted to burning tires for energy generation, which experts warn leads to harmful air pollution.
Experts emphasize the need for transparency in disclosing the energy sources used for Bitcoin mining. They stress that entities involved in Bitcoin transactions bear responsibility for associated emissions, highlighting the importance of addressing environmental concerns in the crypto industry.