Bitcoin Mining Lawsuit Set For February 2024 | WJHL
JONESBOROUGH, Tenn. (WJHL) — Washington County’s legal effort to shut down a Bitcoin mine that has been a source of controversy in Limestone since May 2021 will not go to trial for another year.
County commissioners rejected a final settlement proposal from defendants BrightRidge and Red Dog Technologies in November. County Attorney Allyson Wilkinson told them last month that she expected the case to go to trial before the fall.
Instead, Chancellor John Rambo has set a trial for 5-7. February 2024. Preparatory investigations from each side must be delivered by 4 January 2024.
“I know we’re all disappointed that this isn’t moving at a faster pace,” Commission Chairman Greg Matherly said Friday. “We expected it to be much earlier, possibly summer. We all want resolution.”
The trial date comes nearly three years after neighbors began complaining about noise at the facility, where powerful computers solve complex algorithms to “mine” the cryptocurrency Bitcoin. Fans used to cool the computers are the source of the noise.
Commissioners learned in September 2021 that Planning Director Angie Charles and Wilkinson had determined the mine violated zoning regulations and ordered BrightRidge — which had applied for a rezoning in 2020 for a “blockchain data center” — to shut it down.
BrightRidge leases land adjacent to the Bailey Bridge Road substation and sells Red Dog huge amounts of electricity for its operation.
BrightRidge responded by saying the county’s problem was with Red Dog, even though Bitcoin mining had never been mentioned prior to its inception. (Technically, a Bitcoin mine is a type of blockchain data center).
The county sued BrightRidge in November 2021 and Red Dog was quickly added as a defendant. Rambo set a trial for July 2022, but then nearly settled with a deal that would have allowed Red Dog to replace the Limestone facility with one in the Washington County Industrial Park.
Commissioners ultimately rejected that settlement three months ago on a 13-2 vote.
Like Matherly, Freddie Malone voted against the settlement.
He said he fears another delay could come before the current set date arrives.
“I don’t think it’s fair for us to assume that this case will be heard in court on that date. I think there is a good chance it will be delayed and extended well beyond that date.”
Malone said he was frustrated at the time, legal fees and efforts spent since county commissioners first ordered the site shut down in October 2021.
“I don’t think any of the commissioners then or now expected it to take this long,” Malone said.
He said the continued delays work in Red Dog and BrightRidge’s favor, allowing the company to continue operating and making money while BrightRidge continues to sell power to what CEO Jeff Dykes confirmed is its largest customer.
“They would prefer that there had never been any conflict, but in light of the conflict, I think their position has probably been delay, stall, drag it out — run out the clock, essentially,” Malone said.
“And we have to remember that it’s not just Red Dog and GRIID (Red Dog’s parent company), it’s our community partner BrightRidge.”
