Emily Walker
A recent decision by a Federal Judge in Little Rock has put a stop to Arkansas State’s plans to shut down a cryptocurrency mining business owned by an individual originally from China. This ruling followed the firm’s request for a Temporary Restraining Order (TRO) on grounds of unlawful discrimination.
Federal Judge Issues Temporary Restraining Order
Chief US District Judge Kristine Baker granted the TRO, as part of the ongoing dispute between Arkansas state and Jones Eagle LLC, a cryptocurrency mining operation. According to reports from the Arkansas Advocate, the firm sought this order, which was approved on November 25, alongside a preliminary injunction that is still pending.
This TRO prevents Arkansas officials from enforcing two specific laws, Act 636 of 2023 and Act 174 of 2024, which focus on enterprises and property held by individuals from China. Act 636 prohibits ownership of property in Arkansas by firms or individuals connected to the Chinese government or other adversarial nations.
Meanwhile, Act 174 restricts the ownership of interests controlled by foreign parties from those nations noted in Act 636. These regulations empower the state’s agriculture department to investigate entities suspected of breaching these provisions and instruct the Attorney General to take necessary actions.
Referencing these laws, Arkansas Secretary of Agriculture Wes Ward referred the mining company to Attorney General Tim Griffin in December 2023, raising concerns about potential significant links between the firm and China.
The move to enforce Acts 636 and 174 against the cryptocurrency company stems from the owner, Qimin “Jimmy” Chen, being of Chinese descent. Chen, a New York resident, manages Jones Eagle through Eagle Asset Holdings Inc., which holds the majority stake in the operation.
However, court documents reveal that Chen immigrated to the United States as a child and is now a naturalized citizen.
The TRO is valid for a period of 14 days, after which a court hearing will address the request for a preliminary injunction and the possibility of extending the restraining order. Alex Jones, representing Chen, commented:
The TRO and preliminary injunction will safeguard our client from further damage as we prepare for a trial to establish that these laws violate constitutional rights and represent an overreach by the legislature.
Crypto Mining Firm Gears Up for Court Proceedings
On November 13, the cryptocurrency firm initiated a lawsuit against the state of Arkansas, Secretary Ward, and Attorney General Griffin, citing breaches of the Fourteenth and Fifth Amendments of the US Constitution.
The lawsuit contends that the enacted laws contradict the US Constitution by stripping individuals of due process, engaging in illegal discrimination based on national origin, and failing to compensate individuals fairly for property seizure.
In his statement accompanying the TRO request, Chen asserted that he has made attempts to collaborate with state officials but has not received favorable responses.
Chen reportedly provided documents to the attorney general detailing that the firm operates on leased premises. Furthermore, he maintains that he has sought meetings with the attorney general’s team to prove his US citizenship but has been denied.
Chen claims that the investigations into his company are motivated solely by his Asian heritage and stated that he feels compelled to sue because he fears the attorney general may take further actions that could harm his business and reputation.
