Biden blocks China-backed crypto mining firm from Wyoming

As a researcher with a background in technology and national security, I find the recent development regarding MineOne Cloud Computing Investment’s crypto-mining operation in Wyoming to be of significant concern. The U.S. government’s decision to halt the construction of this mine based on potential national security threats is a prudent one, given the credible evidence pointing towards Chinese ownership and potential risks associated with such operations.

The US authorities have issued a stop order to a cryptocurrency mining firm with Chinese backing, preventing it from building a new mining facility in Wyoming.

Based on the May 13th directive issued by President Joe Biden, MineOne Cloud Computing Investment and its collaborators are mandated to relinquish control of the property situated close to the Francis E. Warren Air Force Base in Cheyenne, Wyoming.

A significant portion of MineOne Cloud’s ownership lies with Chinese entities. In early June 2022, they purchased the land with plans to establish a cryptocurrency mining facility on it.

“According to reliable information, MineOne Partners Limited, a corporation based in the British Virgin Islands with substantial controlling interest held by Chinese citizens, could potentially engage in activities endangering the security of the United States.”

The directive mandates my firm to dismantle and remove all existing equipment from the site. Moreover, Chinese-affiliated entities are prohibited from accessing the location, which is in close proximity to a U.S. airbase.

MineOne has a 120-day deadline to shut down its business and put its property up for sale. During this period, the company is not permitted to transfer ownership of these assets to any external entity.

In October 2023, I received a notification from Microsoft, being a tech giant and the operator of a local data center, that raised concerns about a mining site.

As an analyst, I would put it this way: I have raised red flags to the Federal Committee on Foreign Investigation in the United States regarding Microsoft’s discovery. The site in question is suspected to operate as a comprehensive intelligence gathering platform.

As a researcher, I propose the hypothesis that the immense computational capabilities of an industrial-scale cryptocurrency mining operation, coupled with the proximity of an undetermined number of Chinese nationals to Microsoft’s Data Center and one of three U.S. strategic missile bases, may introduce substantial security risks.

The report followed an investigation by the committee that identified national security risks.

In recent times, the United States has experienced an influx of Chinese-owned crypto-mining operations setting up shop within its borders. This trend began after China enacted a ban on such activities in 2021. The allure of affordable electricity costs in certain American regions significantly contributes to this phenomenon.

Based on a New York Times article, it was revealed that mining operations owned by Chinese entities were identified in no fewer than twelve states across the US, with Texas, Wyoming, Arkansas, and Ohio being among them.

Last month, the Biden administration implemented a new tax policy towards cryptocurrency mining, imposing a 30% levy on the electricity consumption by miners. This decision sparked controversy, with Senator Cynthia Lummis from Wyoming, a Republican, voicing her concern that it could potentially “eliminate” the sector.

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2024-05-14 12:21