El Reno Bitcoin Mining Operation May Have Operated Illegally for Years

El Reno Bitcoin Mining Operation May Have Operated Illegally for Years

An El Reno Bitcoin mining operation may have operated unlawfully for nearly three years before a massive water leak at the property disrupted service to nearby businesses, city offices and schools, according to city officials.

The City of El Reno said approximately 3 million gallons of water were lost during a multi-day leak at the property in the 800 block of West Jensen Road. A subsequent review of city records raised questions about whether Athlon Blockchain LLC continued operating despite a stop work order and without obtaining a required Certificate of Occupancy.

El Reno Bitcoin Mining Operation Faced 2023 Stop Work Order

According to the city, the property was rezoned to Moderate Industrial in 2019. Athlon Blockchain later submitted a Commercial Building Permit Application, and construction was allowed to begin after a permit was issued.

Problems emerged in June 2023, when city inspectors identified fire and life safety violations along with expired building and electrical permits.

The city issued a Stop Work Order and gave the property owner until December 2023 to obtain new permits. Operations were supposed to remain suspended until the facility received a Certificate of Occupancy.

City officials now say their review indicates Athlon Blockchain may have continued operating without securing that certificate.

Information about building permits, inspections and municipal requirements is available through the City of El Reno.

The findings are significant because a Certificate of Occupancy generally establishes that a building has met applicable requirements before it can legally be occupied or used for its intended purpose.

3 Million Gallon Water Leak Leads to Property Condemnation

The questions surrounding the Bitcoin mining facility surfaced after the major water leak was discovered on private property.

City officials estimate approximately 3 million gallons of water were lost over multiple days before the leak was located and addressed. The incident disrupted water service in parts of El Reno, affecting businesses, municipal offices and schools.

After the leak was discovered, city staff inspected the property and ultimately condemned it because of multiple code violations.

Officials said the combination of the water leak and existing fire and life safety violations created a potential hazard to the health, safety and welfare of the community.

Fire and building safety standards are designed in part to reduce risks to occupants, emergency responders and surrounding properties. Information about statewide fire safety oversight is available through the Oklahoma State Fire Marshal.

The city has not indicated that El Reno residents will be responsible for expenses associated with the privately owned facility.

El Reno Preparing Legal Action to Recover Water Leak Costs

The City of El Reno says its legal team is preparing to pursue recovery of costs and expenses associated with the leak from the property owner.

Those expenses could include city resources used to locate the leak, stop the water loss and address resulting problems.

City officials also said they are reviewing internal procedures to make sure Stop Work Orders are properly monitored and tracked in the future. The review comes after records indicated the mining operation may have continued for years despite the 2023 order.

The city's allegations could also raise broader questions about compliance with local building, electrical and fire codes. Oklahoma municipalities have authority under state law to establish and enforce certain building and safety requirements. Oklahoma statutes and municipal law can be reviewed through the Oklahoma State Courts Network.

At this point, city officials have described the operation as potentially unlawful based on their review of permitting and occupancy records. Any legal liability or financial responsibility will ultimately depend on the outcome of the city's investigation and any subsequent legal proceedings.

For El Reno, the immediate focus is now on determining how the facility continued operating, strengthening oversight procedures and ensuring taxpayers are not left paying for the 3 million gallon water loss on private property.

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