NewRays Bitcoin Mining Sues Arkansas Judge Over Alleged Selective Noise Law Enforcement

• Bitcoin mining firm NewRays files a lawsuit alleging selective enforcement of noise legislation.
• The firm claims that local authorities are discriminatorily targeting crypto mining operations.
• Key figures in the lawsuit include Judge Allen Dodson and prosecuting attorney Phil Murphy.

Bitcoin mining company NewRays sues local authorities over alleged discriminatory practices in noise legislation enforcement.

NewRays Alleges Unfair Targeting Through Noise Legislation

NewRays, a Bitcoin mining company, has launched a lawsuit against Arkansas County officials, asserting that they enforced noise regulations in a discriminatory manner. Acquiring property for a data center in Faulkner County in October 2022, NewRays claims that local zoning laws were then non-existent. However, subsequent complaints from residents led to the introduction of new ordinances imposing decibel limits and associated criminal penalties.

Conflict with Local Regulations

The complaint emphasizes that these newly enacted laws contradict the Arkansas Data Centers Act of April 2023. This act is designed to shield large-scale data mining operations from undue regulatory discrimination. NewRays alleges that the enforcement of these ordinances aims to support a civil lawsuit filed by local residents. Legal efforts by NewRays to transfer this civil case to federal court have been contested by the county district court, which insists on retaining jurisdiction.

Impartiality in Enforcement Questioned

According to Justin Daniels, a partner at Baker Donelson, targeting cryptocurrency companies like NewRays is not uncommon due to prevalent criticisms regarding Bitcoin’s energy consumption. Daniels points out the irony, noting that data training centers for artificial intelligence, which also consume significant amounts of energy, do not face comparable scrutiny. This discrepancy underscores a broader societal debate on the perceived value of different technological advancements.

Details of the “Crypto Mine Ordinance”

The filing claims that a “crypto mine ordinance” discussed by the county as early as June 2023 was explicitly designed to target the crypto mining sector. According to NewRays, this ordinance, referred to as “Ordinance 23-20,” was unjustly applied solely to NewRays despite other businesses in the vicinity producing more noise. This selective application of the law adds weight to NewRays’ claims of targeted discrimination.

Seeking Judicial Relief

NewRays has petitioned the court for both preliminary and permanent injunctive relief to prevent the defendants from enforcing the disputed ordinance. This legal move seeks to halt what the company views as an unfair and targeted application of local laws against its operations. To date, requests for comments from Judge Allen Dodson have gone unanswered.

Conclusion

The legal battle initiated by NewRays not only highlights the ongoing tensions between local authorities and cryptocurrency firms but also raises critical questions about the impartial application of laws. As the case progresses, it could set a critical precedent for how regulatory frameworks are designed and enforced for burgeoning technologies like cryptocurrency mining.