President Biden issued an executive order demanding that a Chinese-owned company shut down and sell its cryptocurrency mine located near an Air Force base in Wyoming due to national security concerns. The mine, operated by a company called MineOne Partners Limited, has been flagged as a risk by Microsoft due to its potential use for surveillance and espionage. The order requires the mine to cease operations immediately, remove all equipment within 90 days, and sell or transfer the property within 120 days.
Cryptomining operations involve using high-powered computers to perform complex calculations in order to earn cryptocurrency such as Bitcoin. The mine near the F.E. Warren base in Cheyenne drew concerns because it used Chinese-manufactured equipment and could potentially pose security threats. Chinese-owned cryptocurrency mines have proliferated in the United States following a ban on such operations in China in 2021. The mines are attracted to the U.S. due to cheap electricity and a well-developed legal system.
The New York Times investigation found Chinese-owned or -operated Bitcoin mines in at least 12 states, consuming as much power as 1.5 million homes. Some of these mines are connected to the Chinese government or Communist Party. The recent executive order is part of a broader trend of addressing national security risks posed by Chinese-owned cryptomining operations in the U.S. This includes President Biden’s previous approval of a bill banning the social media app TikTok unless it is sold by its Chinese owner.
In response to the growth of Chinese-owned cryptomining operations, Arkansas Governor Sarah Huckabee Sanders signed laws restricting foreign ownership of such facilities in the state. This legislation aims to address concerns about noisy and disruptive mining operations, as well as potential security risks. Chinese investors with links to the authoritarian government have been operating Bitcoin mines in Arkansas and other states, prompting calls for tighter regulations.
The amended laws in Arkansas require cryptomines owned in part by foreign nationals subject to arms regulations to divest within one year. The legislation intends to address backlash from residents near mining facilities who have complained of noise pollution and decreased property values. President Biden’s executive order targets a Chinese-owned company called MineOne Partners Limited, which had built a cryptocurrency mine near an Air Force base in Wyoming. The company has ties to Chinese nationals and was identified as a national security risk due to its operations in close proximity to the base and a data center.
The Chinese-owned company MineOne was established in partnership with Bit Origin Ltd., a former Chinese pork producer that transitioned to cryptocurrency mining. The company’s president, Li Jiaming, has stated that the site was chosen based on a contract with the local power company rather than its proximity to the base or data center. The executive order to shut down the mine underscores the government’s efforts to address potential risks posed by Chinese-owned cryptomining operations across the United States.
