Naturalized Citizen Wins Round in Crypto Legal Battle

Crypto Mining Showdown: Naturalized Citizen Wins Round in Crypto Legal Battle

Written by Aaron S.,

Editor-In-Chief

Last Updated: November 27, 2024

Key Takeaways

An Arkansas judge issued a TRO, pausing state action against a crypto firm owned by a naturalized US citizen of Chinese origin;
The dispute centers on Arkansas laws targeting property and digital asset ownership by Chinese nationals, raising discrimination concerns;
The TRO prevents enforcement for 14 days, with a hearing set to decide on extending protections and reviewing the laws’ constitutionality.

Ace quick missions & earn crypto rewards while gaining real-world Web3 skills. Participate Now! 🔥

BITDEGREE IN YOUR SOCIAL FEED

A US federal judge in Arkansas has intervened to prevent state officials from shutting down a cryptocurrency mining business operated by an American citizen of Chinese origin.

This decision, issued as a temporary restraining order (TRO), halts actions against the operator while legal proceedings continue. Chief US District Judge Kristine Baker granted the TRO in favor of Jones Eagle, a crypto mining company, on November 25.

The lawsuit stems from two state laws that limit property and business ownership by Chinese nationals. These laws—Act 636 of 2023 and Act 174 of 2024—are purposed for foreign ownership of land and digital asset mining operations within Arkansas.

Harmony ONE Explained (Beginner-Friendly Animation)

Did you know?

Want to get smarter & wealthier with crypto?

Subscribe - We publish new crypto explainer videos every week!

Act 636 specifically bars individuals or businesses linked to the Chinese government from owning property in the state. Meanwhile, Act 174 restricts digital asset mining ownership by non-US entities.

The state alleged that the firm was controlled by Qimin “Jimmy” Chen, a Chinese national, and sought a permanent shutdown of the operation.

Chen, however, is a naturalized US citizen residing in New York. He argued that the state's actions constituted unlawful discrimination based on his national origin and requested the TRO to prevent enforcement of the laws.

The TRO, effective for 14 days, blocks Arkansas authorities from taking action against Chen and his company while the court reviews the case. A hearing will later determine whether the restraining order should be extended and if a preliminary injunction is warranted.

Chen’s attorney, Alex Jones, expressed confidence in the case, stating:

The TRO and preliminary injunction will prevent further harm to our client while we prepare for a trial on the merits where we will get to fully present our case as to why the laws are unconstitutional and reflect legislative overreach.

The Arkansas case isn't the only legal battle shaking up the crypto world. Just recently, a victory was scored against government overreach in the Tornado Cash sanctions dispute. What sparked this triumph? Read the full story.