A US federal judge in Little Rock has temporarily blocked efforts by the state of Arkansas to shut down a cryptocurrency mining company owned by a Chinese-born man. The ruling comes after the company requested a temporary restraining order (TRO) claiming unlawful discrimination.
US federal judge grants temporary restraining order
Chief U.S. District Judge Christine Baker issued a temporary restraining order amid the legal battle between the state of Arkansas and cryptocurrency mining company Jones Eagle LLC. Arkansas attorney Reports The company’s lawyers requested a TRO, which a federal judge granted on Nov. 25, and a preliminary injunction, which has not yet been approved.
The TRO temporarily stopped Arkansas officials from enforcing two laws, Act No. 636 of 2023 and Act No. 174 of 2024, that target businesses and property owned by Chinese nationals. Law No. 636 prohibits ownership of property in the state by companies or individuals linked to the Chinese government and other countries considered adversaries of the United States.
At the same time, Law 174 prohibits ownership of interests “controlled by a foreign party” linked to countries listed in Law 636. These laws give the state Department of Agriculture the power to investigate entities suspected of violating these rules and direct the Attorney General to take action against them. they.
Based on these laws, Arkansas Secretary of Agriculture Wes Ward referred the cryptocurrency mining company to Attorney General Tim Griffin in December 2023, alleging that Jones Digital LLC, the former name of Jones Eagle, may have significant ties to China.
Excerpt from Ward's letter to Attorney General Griffin. Source: Arkansas Advocate
The attempt to enforce Law No. 636 and Law No. 174 against the cryptocurrency company is based on the Chinese origin of its owner. Kimin “Jimmy” Chen, a Chinese-born man based in New York, controls Jones Eagle through Eagle Asset Holdings, the majority owner of the mining company.
However, court documents highlight that Chen immigrated to the country as a child and is a naturalized US citizen.
The TRO is in effect for 14 days, after which a hearing will be held in court to discuss the request for a preliminary injunction and possibly an extension of the restraining order. Alex Jones, Chen’s lawyer, stated:
The TRO and preliminary injunction will prevent further harm to our clients as we prepare for trial on the merits where we will be able to fully present our case as to why the laws are unconstitutional and reflect legislative overreach.
The cryptocurrency mining company is preparing for a legal battle
The cryptocurrency mining company filed a lawsuit on November 13 against the states of Arkansas Ward and Griffin, citing violations of the 14th and 5th Amendments to the US Constitution.
Jones Eagle's lawsuit against Arkansas state. Source: Arkansas Advocate
The lawsuit says the two laws violate the U.S. Constitution by “denying due process, unlawfully discriminating against a person on the basis of national origin, and denying a person fair compensation for taking property.”
In a statement accompanying the company’s TRO request, Chen claimed that he tried to cooperate with state authorities but did not receive a positive answer.
According to the report, Chen provided the prosecutor with documents showing that the company operated on leased land. Additionally, he allegedly attempted to meet with the district attorney’s staff to provide proof of his U.S. citizenship but was “rejected.”
Ultimately, Chen argues that the investigation was based solely on his Asian name and claims he filed the lawsuit because he “believes the Attorney General is willing to take steps against his company that would further damage his business and reputation.”
Total crypto market capitalization is at $3.16 trillion in the three-day chart. Source: TOTAL on TradingView
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