On November 25, 2024, a federal judge in Little Rock, Arkansas, issued a temporary restraining order (TRO) preventing state officials from shutting down a cryptocurrency mining operation owned by a naturalized US citizen of Chinese descent. The ruling came amid a lawsuit involving Arkansas laws targeting businesses linked to the Chinese government.
The case revolves around two laws: Act 636 of 2023, which prohibits property ownership by individuals connected to the Chinese government, and Act 174 of 2024, which bans foreign entities from owning digital asset mining operations. The state alleged that the firm, Jones Eagle, was owned by Qimin 'Jimmy' Chen, a Chinese national, and sought a permanent shutdown.
Chen, however, claims to be a naturalized citizen residing in New York. His attorney argues that the state's actions reflect discrimination based on national origin. The TRO will remain in effect for 14 days, with a court hearing scheduled to discuss a preliminary injunction. This ruling highlights ongoing tensions regarding cryptocurrency regulations and national security concerns.