A federal judge has temporarily halted Arkansas laws aimed at foreign-owned cryptocurrency mining operations, citing possible constitutional concerns.
On November 25, Chief US District Judge Kristine Baker issued a temporary restraining order (TRO) in a lawsuit involving Jones Eagle, a cryptocurrency mining company based in Little Rock, Arkansas, Advocate reported. The case challenges two state laws—Act 636 of 2023 and Act 174 of 2024—that specifically target businesses and properties owned by Chinese nationals.
Act 636 restricts property ownership in Arkansas by individuals or companies linked to the Chinese government, while Act 174 prohibits foreign entities from owning digital asset mining operations.
Source: Arkansas Advocate
The lawsuit alleges that the company is controlled by Qimin “Jimmy” Chen, a Chinese national, and seeks to permanently shut down the operation. Court records show that Chen holds a majority stake in the mining firm through Eagle Asset Holding.
The TRO will remain in effect for 14 days, with a court hearing set to decide if it will be extended or turned into a preliminary injunction to block the state’s actions against Chen, a naturalized US citizen.
Chen’s attorney, Alex Jones, stated that the TRO and potential injunction would prevent further damage while preparing for trial, where they plan to argue that the laws are unconstitutional and an overreach by the state.
Chen has claimed he had already provided the attorney general with evidence that the mining site is not on agricultural land and that he had tried to meet with state officials about his citizenship but was denied.
In response, Attorney General Tim Griffin stated that his office has been investigating several crypto-mining operations, though not all parties have fully cooperated.
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