The United States government has ordered a Chinese-backed cryptocurrency mining company to stop building a mining facility in Wyoming.
According to a May 13 order signed by President Joe Biden, MineOne Cloud Computing Investment and its partners must sell the property located near the Francis E. Warren Air Force Base in Cheyenne, Wyoming.
MineOne Cloud, which is majority-owned by Chinese interests, acquired the land in June 2022 and was planning to establish a crypto-mining operation.
“There is credible evidence that leads me to believe that MineOne Partners Limited, a British Virgin Islands company, is ultimately majority owned by Chinese nationals,” President Biden stated in the order.
The company has 120 days to cease operations and divest the property. They are also prohibited from transferring these assets to any third party.
The mining site came under scrutiny in October 2023 when tech giant Microsoft, which operates a data center in the area, flagged it. Microsoft alerted the Federal Committee on Foreign Investment in the United States (CFIUS), raising concerns that the site could be used for intelligence gathering.
“We suggest the possibility that the computing power of an industrial-level crypto-mining operation, along with the presence of an unidentified number of Chinese nationals near Microsoft’s Data Center and one of three strategic-missile bases in the U.S., presents significant threat vectors,” Microsoft stated in its report.
Following an investigation, CFIUS identified national security risks associated with the site.
In recent years, the U.S. has seen multiple Chinese-owned crypto-mining farms move to the nation after China banned cryptocurrency mining in 2021. Some areas in the U.S. offer cheap electricity, which attracts these companies.
According to a New York Times report, Chinese-owned mining farms have been reported in at least 12 states, including Texas, Wyoming, Arkansas, and Ohio.
Last month, the Biden administration introduced a 30% tax on electricity use by cryptocurrency miners as part of a broader crackdown on the sector. This move faced criticism, with Senator Cynthia Lummis, a Wyoming Republican, arguing it would “destroy” the industry.
Summary Review: President Biden’s decision to halt MineOne Cloud Computing Investment’s operations in Wyoming reflects growing concerns over national security and the influence of Chinese-backed entities in strategic locations. The U.S. continues to tighten regulations on the cryptocurrency mining industry, balancing economic interests with security considerations. This move signals a broader trend of scrutinizing foreign investments, especially those linked to critical infrastructure and technology sectors.
Disclaimer: Remember that nothing in this article and everything under the responsibility of Web30 News should be interpreted as financial advice. The information provided is for entertainment and educational purposes only. Investing in cryptocurrency involves inherent risks and potential investors should be aware that capital is at risk and returns are never guaranteed. It is imperative that you conduct thorough research and consult with a qualified financial advisor before making any investment decision.
