President Biden Shuts Down Chinese-Based Cryptocurrency Mining Firm Near Wyoming Missile Base
United States President Joe Biden has ordered the shutdown of MineOne Partners Ltd., a Chinese-backed cryptocurrency mining firm located near the Francis E. Warren Air Force Base in Cheyenne, Wyoming. The order also prohibits MineOne from acquiring any property near the base, citing significant national security risks.
National Security Concerns
The President’s directive arises from concerns that MineOne, situated just a mile from an Air Force base housing nuclear-armed intercontinental ballistic missiles, poses a severe threat to national security. Biden emphasized that the foreign-sourced equipment used by MineOne could facilitate surveillance and espionage activities.
CFIUS Involvement and Compliance Requirements
The Committee on Foreign Investment in the United States (CFIUS), chaired by Treasury Secretary Janet Yellen, identified the unreported acquisition of the Cheyenne property by MineOne in June 2022. Following a public tip, CFIUS assessed that the purchase and development of the property for specialized cryptocurrency mining operations posed significant risks due to its proximity to a strategic military installation.
President Biden’s order mandates that MineOne and its affiliates divest all legal and beneficial ownership interests in the property within 120 days. Additionally, they must remove all equipment and structures related to their operations within 90 days, subject to verification by CFIUS. Until divestment and removal are complete, MineOne is barred from any access to the property, with the Attorney General authorized to enforce compliance.
Broader Implications and Recent Actions
This shutdown is part of broader U.S. scrutiny over Chinese-owned cryptocurrency mining operations, which have surged in the U.S. since China banned in 2021. Despite some mining returning to China, many Chinese entrepreneurs are attracted to the U.S. due to its relatively inexpensive electricity and robust legal framework.
Recently, U.S. officials have taken additional steps to restrict foreign ownership of crypto mining operations. Earlier this month, Arkansas’s Governor, Sarah Huckabee Sanders, signed laws limiting foreign nationals from countries such as China, Iran, and Cuba from owning crypto mines within the state. These laws aim to prevent foreign investments that could threaten national security, particularly around sensitive military installations and technology.
Conclusion
The action against MineOne underscores the U.S. government’s vigilance in protecting national security from potential threats posed by foreign-owned enterprises. As crypto mining continues to grow, particularly with Chinese investments, the U.S. is likely to enforce stricter regulations to safeguard critical infrastructure and strategic assets.
