Former Employees Expose Troubles at Crypto Mine in Wisconsin

One man had a left-hand wrist injury from a work accident. He had been trying to use a computer when he fell. He was pictured here a few months prior to his layoff.

Speaking in their native language Mandarin, Aaron and Justin (names not published due to concern about their legal status working in the US) believed that they could find a long-term job working for SOS, a global company that had established a North American cryptocurrency mining operation in Wisconsin.

What they didn’t know was that it was possible to bypass employment and immigration laws.

Many of them claimed that they were suddenly fired and ended up spending weeks in motels before finally receiving their final month’s wages.

This is just one example of the alarming signs that this company with only a few employees has been showing. It may not be the economic boost that the city of Park Falls was looking for when it loaned SOS Limited $1 million to revive the paper mill.

More recently, the North American Company One of the announced cryptocurrency mining sites is in Marinette County. It has been operational for the past two years, but 94% of its shares were destroyed after raising more than $600 million from investors.

Cryptocurrency mining operations were prohibited in China in 2021 due to concerns about economic stability and criminal activity. Since then, they have moved to countries with less restrictive regulations, such as the United States.

For decades, the famous paper mill built on the banks of the Flambeau River was the heartbeat of the company town. It was able to harness hydroelectric power.

“It meant a lot to this community,” said John Tapplin, former president of the local union. “At one point I was probably dumping like a quarter of a million dollars every two weeks into the economy.”

But the future of the plant is uncertain as it was sold to its previous owner in 2006. It was only operational for a little over ten years before being temporarily shut down in 2019.

New Jersey businessman Yong Liu, based in the United States, reopened the business the following year. The city provided a $1 million bridging loan to the company in order for it to survive, but the COVID-19 pandemic and depressed commodity prices ultimately led to its collapse.

The mill was sold at auction to a liquidator. Several creditors, including the City of Park Falls, were required to appear in court in order to receive payment. The judge ordered Liu’s business interest to pay a loan amount of $828.108.

In early 2022, computer racks were used to mine cryptocurrency in the old paper mill. Cryptocurrencies such as Bitcoin and Ethereum were created over the past decade by complex computers to solve computational problems and create unique strings of information. Mining these complex problems creates digital money that can be exchanged for US dollars.

The Chinese government has opposed digital currencies for many years, in part due to the difficulty of regulating them, but also because computers use a lot of power, which raises environmental concerns.

The latest report from the White House estimated that US cryptocurrency production would require 3 million cars to produce the same amount of electricity as annual greenhouse gas emissions.

In Park Falls, a cryptocurrency operation was welcomed with open arms in early 2022. “The city does not believe that this use is the best employment use of the property for our area, however, that is a matter for the mill owner alone to decide,” said City Manager Brentt Michaelek in a statement on the Park Falls Facebook page.

SOS Limited’s arrival in Wisconsin coincided with the company’s open admission that it was being examined by the Securities and Exchange Commission. After fraud allegations were made by two investment companies, the SEC served the company with a subpoena.

According to the company

Unveil. But In A March 2021 web announcement: Company denied being called this “distorted, misleading and unsubstantiated claims” And They vowed to face its critics.

“SOS supports the trustworthiness of the company and remains devoted to upholding transparency and the highest ethical principles,” He declared.

The Company Agreed to pay $5 Million To settle a class action lawsuit brought by former shareholders. They were suing the company because of allegations made against research firms. SOS Limited He They did not accept any wrongdoing.

The Park Falls The The cryptocurrency business grew silently when it started to move its machines outside of the mill’s walls in the early 2022.

Michaelek Officials The owner was not given any permits for expansion.

The Company I filed a second request, but it was declined August Because There was no engineering survey that could have predicted how loud an outdoor operation would be.

The The The vote was held two months after the company released a short video. It was an uncommon public statement on its intentions. Wisconsin business. It The The inside of the Park Falls It It was the first of three US sites to announce evidence of cryptocurrency mining. April 2021.

That Ad A partnership between US-based holding corporations that have energy deals Park Falls; Stacyville, Maine Niagara, Wisconsin.

“If and when operations of the site go live, the company anticipates that it will create significant employment opportunities (sic) in the US,” The Company sent in April 2021 Press release

But The Experts Wisconsin They After they become operational, many are doubtful that cryptocurrency mining operations will ever generate meaningful employment.

“It’s similar to other things like data centers,” Tom Still The Wisconsin Technology Council?, Madison-Based independent advocate to the state for the tech sector. “You know, they get a lot put into it in terms of construction, but not necessarily a lot of employment afterwards.”

Cryptocurrency The These products are not subject to regulation. United States It It is unknown how many mines are located in the country. Wisconsin. Still He According to him, he only knows one state in the state. Digital Power Optimization About 50 miles to the southeast Eau Claire. The Operation Renewable energy is used to power the system

Alex StoewerChief Operating Officer Of New York-based Digital Power OptimizationAccording His company’s partnership with renewable energy producers is a way for it to stay in the black, he says.

“Despite difficulties in the broader crypto market, this operation continues to generate positive cash flow, much of which is reinvested in a maintenance plan for the hydroelectric infrastructure, canal and dam,” He The statement was made in a statement. written.

Aside Starting At Park FallsSOS Limited’s Two Other projects are also available Maine In Niagara, Wisconsin These They are still to be realized. Niagara City Manager Audrey Fredrick It It was reported that the former paper mill has been abandoned. April 2021.

She There Reports have indicated that some people went to the nearby town. Michigan’s Upper Peninsula See If anything is not as it should be.

“People tried to break into the site,” Fredrick said. “As investors who felt cheated and, of course, the site is safe because there is a dump…and dangerous because there is a dam there, but no, there is nothing.”

SOS Limited’s The All three sites have US as a partner LiuFor For nearly two decades, he was the owner of the Park Falls plant. Reached He He spoke briefly on his cell phone. Wisconsin Watch So So far, the only thing that has been successful is Park Falls The The siege has begun. There There There were technical difficulties MaineHe His company and his company have not yet signed a power purchase agreement for each other. Wisconsin Site, he stated.

When Ask About employment Chinese Nationals Work visas not required Wisconsin, Liu The Clients employed men in China Who Capacity to mine cryptocurrency is available for lease

“Those are not our employees,” He stated.

Contract signed by Aaron Reviewed By Wisconsin Watch This This shows that he was employed Shenzhen Beibeizhu TechnologyBBZ is also known as BBZ. The SOS is a major equipment provider to companies LimitedSoOn online forums, shareholders also challenged the nature and relationship between these companies.

Aaron AlsoA contract was signed by SOS’s US subsidiary Limited. It It This happened only after the two men had been fired. Aaron It It was discovered that the company didn’t have an SOS. Limited’s Contract with the USA

Ming LuoThe Supervisor of the Park Falls site, referred questions LiuHe Did not return calls or messages.