Legal Victory for Crypto Mining Firm as US Federal Judge Intervenes
In a significant legal development, a federal judge in Little Rock has temporarily blocked the state of Arkansas from shutting down a cryptocurrency mining company owned by a Chinese-born businessman. This decision came after the company filed for a Temporary Restraining Order (TRO), alleging unlawful discrimination.
Federal Judge Issues Temporary Restraining Order Amidst Legal Dispute
Chief US District Judge Kristine Baker has issued a temporary restraining order in the ongoing legal standoff between the state of Arkansas and the crypto mining entity, Jones Eagle LLC. According to reports from Arkansas Advocate, the firm’s legal team successfully obtained the TRO on November 25, with a preliminary injunction still pending. This order temporarily halts the enforcement of two state laws, identified as Act 636 of 2023 and Act 174 of 2024, which specifically target properties and businesses owned by Chinese nationals.
Act 636 prohibits property ownership within the state by entities or individuals linked to the Chinese government and other nations deemed adversarial to the United States. Concurrently, Act 174 restricts ownership of interests controlled by foreign parties from the countries mentioned in Act 636. These laws empower the state’s agriculture department to investigate potential violations, authorizing the Attorney General to take legal action.
The Arkansas Secretary of Agriculture, Wes Ward, brought the crypto mining firm to the attention of Attorney General Tim Griffin in December 2023. The referral was based on suspicions that Jones Digital LLC, the former name of Jones Eagle, might possess substantial connections to China.
The enforcement attempt of Acts 636 and 174 against the crypto company is primarily due to the Chinese heritage of its owner, Qimin “Jimmy” Chen. Despite originally being from China, Chen, who resides in New York, is a naturalized US citizen and controls Jones Eagle through Eagle Asset Holdings Inc., the primary stakeholder in the company.
Effective for 14 days, the TRO will be followed by a court hearing to deliberate on the preliminary injunction and possibly extend the restraining order. Alex Jones, Chen’s attorney, remarked, “The TRO and the preliminary injunction will prevent further harm to our client while we prepare for a trial on the merits where we will get to fully present our case as to why the laws are unconstitutional and reflect legislative overreach.”
Crypto Mining Firm Gears Up for Legal Challenge
On November 13, the crypto mining company initiated a lawsuit against the state of Arkansas, Wes Ward, and Tim Griffin, asserting constitutional violations under the Fourteenth and Fifth Amendments of the US Constitution.
The lawsuit claims that the state’s laws infringe on constitutional rights by “denying due process, illegally discriminating against a person based on national origin, and depriving a person of just compensation for taking property.”
In a statement accompanying the TRO request, Chen expressed that he had endeavored to cooperate with state authorities, yet received no favorable response. According to reports, Chen provided documentation to the Attorney General demonstrating that the firm operates on leased land. Moreover, he attempted to arrange meetings with the Attorney General’s staff to prove his US citizenship, but these requests were allegedly denied.
Chen contends that the investigation is based solely on his Asian name, leading him to file the lawsuit because “he believes the Attorney General is prepared to take steps against his company that will further harm his business and reputation.”
The broader implications of this legal battle are significant, as it not only addresses the intersection of state laws and constitutional rights but also highlights the challenges faced by international entrepreneurs in the US. As the legal proceedings unfold, the outcome could set a precedent for similar cases in the future.
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