The US government has issued an order to halt the construction of a Chinese-backed cryptocurrency mining facility in Wyoming, citing potential national security risks. The company, MineOne Cloud Computing Investment, majority-owned by Chinese nationals, was instructed to divest the property near a US air force base. The order mandates the removal of all installed equipment and bans Chinese-linked entities from accessing the site, prompting the firm to wind up operations and sell the property within 120 days.
Concerns about the mining site were raised by tech giant Microsoft, which flagged it as a potential intelligence collection operation. Microsoft’s report prompted an investigation by the Federal Committee on Foreign Investment in the United States, which identified national security risks. The presence of an industrial-level crypto-mining operation near a US data center and strategic missile base was deemed a significant threat.
The US has witnessed an influx of Chinese-owned crypto-mining farms relocating to the country following China’s ban on such activities in 2021. These entities are attracted to regions offering cheap electricity rates, with reports of Chinese-owned farms in at least 12 states. Last month, the Biden administration initiated a crackdown on the cryptocurrency mining sector with a 30% tax on electricity use by miners, sparking criticism from lawmakers concerned about the impact on the industry.
The move to halt the Chinese-backed crypto mine in Wyoming reflects ongoing efforts by the US government to address national security concerns associated with foreign involvement in critical infrastructure projects. It underscores broader tensions between the US and China in the realm of technology and highlights the complexities surrounding the regulation of cryptocurrency mining operations in the country.
