A bitcoin mining operation in Tennessee is being sued by neighbors due to the high level of noise the facility produces. The lawsuit, which was filed in August, asks mining operator Red Dog to shut down operations and pay personal damages fees, as well as compensate owners for decreased property values. The lawsuit could set a precedent for other cases now that Bitcoin mining companies are seeking to migrate to new zones previously ignored.
Bitcoin Mining Operation Faces Noise Complaint
Red Dog Technologies, the owner of a Bitcoin mining operation located in the U.S. state of Tennessee, is being sued by a member of a neighboring community due to the amount of noise the operation produces. According to reports from local media, the complaint states that the noise coming from the mine creates a situation that “unreasonably interferes” with the “use and enjoyment” of the plaintiff’s property.
Worries about the mine disturbing citizens and the legality of the operation have already been raised to Washington County Mayor Joe Grandy, who was informed about the issue in June. Apparently, the mine didn’t comply with the zoning requirements to perform cryptocurrency mining operations in the area. Red Dog reportedly tried to dampen the noise last summer, but commissioners weren’t satisfied.
An Important Lawsuit
While some might see this lawsuit as just another common complaint, it has special importance that could set a precedent for similar cases now that mining companies are setting up in regions that were ignored previously. At the core of the complaint is a rezoning proposal that Brightridge, the power company that leases the property to Red Dog, the mine operator, requested from the county to be able to operate the facility (that is described as a blockchain data center) in the zone.
The complaint states that the rezoning request, proposing to change the zone type from General Agriculture to Agriculture Business, is not accurate enough to be considered valid. The request states that “while there are small fans on the data centers that generate noise, the petitioner has advised that the noise is considered small and will not impact or be heard from adjoining properties.”
The current case could result in the closure of the bitcoin mining facility, now that the planning commission of the county has voted unanimously to shut down the mine and pursue legal action against the operator if the company fails to comply.
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