U.S. Halts China-Linked Crypto Miners Citing 'National Security Threat' in Proximity to Nuclear Base
President Joe Biden has issued a decisive order aimed at halting operations at a cryptocurrency mining facility situated near Warren Air Force Base in Wyoming.
US Government
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Because Bitcoin
May 14, 2024
US Government
Bitcoin
Mining
News
President Joe Biden has issued a decisive order aimed at halting operations at a cryptocurrency mining facility situated near Warren Air Force Base in Wyoming. This move, driven by concerns regarding national security, directs MineOne, a British Virgin Islands company predominantly owned by Chinese nationals, to dismantle all mining equipment and infrastructure within a one-mile radius of the military installation, home to Minuteman III nuclear missiles.
The decision follows an investigation triggered by MineOne's acquisition of the property in 2022, which notably omitted filing with the Committee on Foreign Investment in the United States (CFIUS). The White House, in collaboration with the Department of the Treasury, underscored the critical role of CFIUS in safeguarding national interests, particularly in transactions involving sensitive military sites.
CFIUS's scrutiny highlighted risks stemming from the facility's close proximity to the Air Force Base and the utilization of specialized equipment for cryptocurrency mining, some of which is sourced from abroad. Despite attempts to negotiate mitigation measures, MineOne's failure to satisfactorily address these security concerns prompted the presidential mandate for divestment.
Secretary of the Treasury Janet L. Yellen emphasized President Biden's unwavering commitment to national security, stressing CFIUS's pivotal role in scrutinizing investments near critical military installations. The decision not only reflects the gravity of potential risks posed by foreign-owned ventures in sensitive areas but also underscores the rigorous evaluation process undertaken by CFIUS to balance security imperatives with the promotion of foreign investment.
By shedding light on this specific case, the Department of the Treasury reiterated that CFIUS's focus remains on addressing national security concerns on a case-by-case basis, affirming its dedication to facilitating foreign investment while safeguarding vital national interests.
