Biden Orders China-Linked Crypto Firm to Cease Operations Near Wyoming Missile Base
Summary:
President Joe Biden has issued an order forcing MineOne Cloud Computing Investment, a China-linked crypto mining firm, to stop operations near a Wyoming nuclear missile base due to national security concerns. The company must divest its property rights used for crypto mining near the Francis E. Warren Air Force Base and remove all equipment installed after its purchase in June 2022. MineOne has 120 days to sell the property, and Chinese-linked entities have been prohibited from any future access to the site.
President Joe Biden of the United States has issued a directive barring a crypto mining company with links to China from operating close to a nuclear missile facility in Wyoming. The directive, issued on May 13, compels MineOne Cloud Computing Investment and its associates to relinquish the rights of a property managed as a crypto mining site in proximity to the Francis E. Warren Air Force Base in Cheyenne, Wyoming. Biden's directive is based on concerns regarding national security and he stated that there's compelling evidence suggesting that MineOne Partners Limited, a company principally owned by Chinese nationals, could potentially compromise the United States' national security.
MineOne acquired the aforementioned property in June 2022, with adjustments made to the site for crypto mining activities in close quarters with the Air Force base. This military site hosts strategic missiles and intercontinental ballistic missiles. The company, along with its affiliates, are obligated to remove all equipment that was added following the modifications. The directive also disallows entities linked to China from accessing the site, situated less than a mile away from the base.
The company is given a 120-day window from the date of the directive to offload the property and is explicitly barred from transferring it to third parties. The proximity of MineOne's site, the Francis E. Warren Air Force base, and a Microsoft data center has been flagged previously by Microsoft, who operates a data center in the vicinity. Its strategic location could theoretically allow the Chinese to conduct comprehensive intelligence operations.
This theory was highlighted in a report presented to the Committee on Foreign Investment in the United States (CFIUS) in August 2022 by Microsoft. Janet Yellen, Treasury Secretary and chairperson of CFIUS, stated that the directive to force MineOne to sell their land reaffirms the crucial role that CFIUS plays in making sure that foreign investments don't pose threats to national security. MineOne successfully raised over $20 million for its inaugural fund within a month in 2021.
The fund, a financial vehicle launched in October 2021, was extensively backed by U.S. institutional investors and wealthy individuals, the company revealed at the time. MineOne declined to comment on the situation. This isn't the first time the Biden administration has clamped down on the U.S. Bitcoin mining industry, pointing to China as an archetype in this regard as part of its sustained assault on cryptocurrency.
Crypto mining faced severe restrictions in China in 2021, resulting in numerous mining operations relocating to other countries, with a significant concentration in the U.S. This latest White House directive comes just before the Biden administration is due to increase tariffs on a range of Chinese imports, including electric automobiles.
Published At
5/14/2024 8:15:29 AM
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