By Michael Scott
US President Joe Biden signed an executive order directing China-linked crypto miner to halt using the site near the Wyoming nuclear missile base. The order indicated that the firms owned by the Chinese national could take action threatening to impede US national security.
The order by Biden bars the China-linked crypto mining firm from further use of land located near the Wyoming nuclear missile base. The order conveyed on Monday, May 13, compelled MineOne Cloud Computing Investment and partners to divest the site run as a crypto mining facility located in Cheyenne, a mile from the Francis E. Warren Air Force Base Wyoming.
President Biden Blocks Chinese-Affiliated Crypto Mining Firm
President Biden cites national security interests as prompting the directive for MineOne Cloud to rescind property rights. The order cited credible evidence that MineOne Partners Limited, though registered in the British Virgin Islands, is majority-owned by the Chinese, whose actions could threaten to hurt the US national security.
MineOne bought the property near the Air Force base in mid-2022 and later initiated improvements to utilize the land for crypto mining. The order indicates that military installation houses strategic and intercontinental ballistic missiles.
The order directs the firm and affiliates to remove the equipment installed on the site following the improvements. It prohibits the Chinese-linked entities from accessing the site.
The order directs the firm to dispose of the property within 120 days. The order prohibits the firm from transferring the property to third parties.
The site has in the past been flagged by global tech giant Microsoft, indicating its location near its data center. The investigation conducted by the New York Times last year cited Microsoft’s August 2022 report to the Committee on Foreign Investment in the US (CFIUS) that the Chinese could leverage the site to pursue full-spectrum intelligence harvesting.
The US Treasury Secretary Janet Yellen, who chairs the CFIUS, explained the order compelling MineOne to sell the property, affirming the essential gatekeeper role of the committee. She added that CFIUS is devoted to ensuring foreign investments will not undermine the US national security.
MineOne’s initial funding round raised over $20 million in a 30-day run following its unveiling. The fund has witnessed active subscriptions from high-net-worth individuals and US institutional investors.
Biden Administration Crackdown on Bitcoin Mining
The Biden-led administration has recently urged a crackdown on the country’s Bitcoin mining, citing the need to replicate China’s ongoing war against crypto. The ruling regime curtailed crypto mining in 2021, prompting the exit of mining firms and the majority of established shops in the US.
The move initiated by the Biden administration aligns with the backdrop of the crackdown targeting Chinese entities within the US. The directives are raising the tensions between the two leading economies as the US draws nearer the November presidential elections.
Biden had in April assented to a law forcing the divestiture of TikTok social media from the Chinese parent firm ByteDance, citing national security. Also, the Biden administration issued new tariffs on Chinese imports, including medical supplies and electric vehicles.
CFIUS Investigations on MineOne
The order targeting MineOne arises from a previous investigation by the CFIUS on corporate deals likely to impair national security. CFIUS draws authority from the Foreign Investment Risk Review Modernization Act of 2018 (FIRRMA).
Biden had, in September last year, directed the CFIUS to factor more risk factors to national security during their assessments. The CFIUS has recently affirmed launching an investigation into TikTok’s conduct.
The White House order notes that MineOne failed to file the acquisition of the property to CFIUS. The filing occurred when the agency began investigating the site following the tip from the public.
China has, in recent years, scrutinized US firms alleging threats to national security. China had amended its laws to restrict the sharing of state secrets, but now, it has broadened its scope to include work secrets.
China imposed restrictions against US tech firms, including Micron, barring it from critical infrastructure sales following a security review and crackdown that targeted several foreign-owned consultancy firms in 2023.