A federal judge in Little Rock, Arkansas, has temporarily prevented state officials from shutting down a cryptocurrency mining operation owned by a US citizen of Chinese descent.
on November 25, US Chief District Judge Kristine Baker issued a temporary restraining order (TRO) in favor of Jones Eagle, a cryptocurrency mining company owned by Qimin “Jimmy” Chen. The case involves two disputed state laws – Act 636 of 2023 and Act 174 of 2024.
Act 636 prohibits companies or individuals affiliated with the Chinese government from owning property in Arkansas, while Act 174 prohibits foreign entities from owning digital asset mining operations .
The state argued that Chen, the majority owner of Jones Eagle through Eagle Asset Holding, is a Chinese citizen and demanded a permanent closure of the operation. However, Chen, a naturalized U.S. citizen living in New York, argued that the state’s actions constituted illegal discrimination based on national origin.
He requested a preliminary injunction to halt enforcement against him. Judge Baker’s ruling halts the state’s actions for 14 days. During that time, the hearing will determine whether the temporary injunction should extend the restraining order, preventing Arkansas officials from intervening in the cryptocurrency mining operation.
Chen’s lawyer, Alex Jones, welcomed the decision, saying it will protect his client, while preparing to argue that the regulations are unconstitutional and beyond statutory limits. The legal dispute also highlights Chen’s efforts to comply with state regulations.
According to court documents, he has provided documents to the Arkansas attorney general to prove that his mining operations are not on agricultural land – a key restriction under state law.
Chen also tried to explain his citizenship status to state officials, but was denied a meeting. “I have been investigating a number of cryptocurrency mining operations and simply looking for the facts, but not all entities have fully cooperated,” Arkansas Attorney General Tim Griffin said.
