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Crypto Mining Showdown: Naturalized Citizen Wins Round in Crypto Legal Battle

Key Takeaways

  • An Arkansas judge issued a TRO, pausing state action against a crypto firm owned by a naturalized US citizen of Chinese origin;
  • The dispute centers on Arkansas laws targeting property and digital asset ownership by Chinese nationals, raising discrimination concerns;
  • The TRO prevents enforcement for 14 days, with a hearing set to decide on extending protections and reviewing the laws’ constitutionality.
Crypto Mining Showdown: Naturalized Citizen Wins Round in Crypto Legal Battle

A US federal judge in Arkansas has intervened to prevent state officials from shutting down a cryptocurrency mining business operated by an American citizen of Chinese origin.

This decision, issued as a temporary restraining order (TRO), halts actions against the operator while legal proceedings continue. Chief US District Judge Kristine Baker granted the TRO in favor of Jones Eagle, a crypto mining company, on November 25.

The lawsuit stems from two state laws that limit property and business ownership by Chinese nationals. These laws—Act 636 of 2023 and Act 174 of 2024—are purposed for foreign ownership of land and digital asset mining operations within Arkansas.

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Act 636 specifically bars individuals or businesses linked to the Chinese government from owning property in the state. Meanwhile, Act 174 restricts digital asset mining ownership by non-US entities.

The state alleged that the firm was controlled by Qimin “Jimmy” Chen, a Chinese national, and sought a permanent shutdown of the operation.

Chen, however, is a naturalized US citizen residing in New York. He argued that the state's actions constituted unlawful discrimination based on his national origin and requested the TRO to prevent enforcement of the laws.

The TRO, effective for 14 days, blocks Arkansas authorities from taking action against Chen and his company while the court reviews the case. A hearing will later determine whether the restraining order should be extended and if a preliminary injunction is warranted.

Chen’s attorney, Alex Jones, expressed confidence in the case, stating:

The TRO and 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.

The Arkansas case isn't the only legal battle shaking up the crypto world. Just recently, a victory was scored against government overreach in the Tornado Cash sanctions dispute. What sparked this triumph? Read the full story.

Aaron S. Editor-In-Chief
Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.
With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.
Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.
Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.

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