A federal judge in Little Rock has temporarily blocked Arkansas from enforcing laws against a cryptocurrency mining operation based in the state due to concerns of foreign ownership. The mining operation, Jones Eagle, is owned by Qimin “Jimmy” Chen, a naturalized American citizen originally from China. The state laws in question restrict foreign ownership of land, including by individuals from countries under certain regulations from the U.S. State Department.
Jones Eagle filed a lawsuit arguing that the laws are discriminatory and unconstitutional, as Chen holds controlling interest in the company and is a U.S. citizen. The temporary restraining order issued by Judge Kristine Baker prevents the state from enforcing the laws and a hearing is scheduled for the future.
This case comes after the state took action against a different company, Syngenta Seed, owned by China National Chemical Company, due to similar laws restricting foreign ownership. The Arkansas Attorney General had ordered the company to divest its Arkansas land within two years and pay a penalty.
The issue of foreign ownership in the crypto mining industry has been a topic of discussion in Arkansas, with concerns raised by state officials regarding possible ties to the Chinese Communist Party. The case involving Jones Eagle will be closely watched as it addresses the constitutionality of the state laws and their application to businesses in the crypto mining industry.
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Photo credit arktimes.com
