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27/11/24
17
Judge Halts Arkansas Ban on Crypto Mining Amid Chinese Nationality Dispute
A federal judge in Little Rock, Arkansas, has intervened in a legal dispute involving a cryptocurrency mining operation linked to a naturalized US citizen of Chinese descent. The order, issued by Chief US District Judge Kristine Baker on November 25, temporarily prevents state officials from shutting down the mining firm, Jones Eagle, located near Dewitt, New York. The ruling comes in light of a lawsuit centered on Arkansas legislation aimed specifically at businesses associated with Chinese nationals.
The two laws in question — Act 636 of 2023 and Act 174 of 2024 — prohibit individuals or companies with ties to the Chinese government from owning property and restrict foreign entities from running digital asset mining operations in the state. State officials accused the operation of being owned by Qimin “Jimmy” Chen, a claim Chen contested by establishing his status as a naturalized US citizen.
The lawsuit seeks to enforce a permanent shutdown of the mining operation, citing its alleged ownership under Chinese law. However, Chen argues that the actions taken against him violate his rights related to national origin. He holds a significant interest in the mining firm through Eagle Asset Holding and claims that the laws are unconstitutional and represent government overreach.
The temporarily granted restraining order will remain in effect for 14 days, after which a court hearing will be convened to deliberate on a preliminary injunction that could further protect Chen from state infringement. His legal team aims to provide evidence asserting the illegitimacy of the state’s claims while refuting the application of the restrictive laws. Chen has also attempted to clarify his citizenship status with state authorities, but has faced resistance in his communications.
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