- President Joe Biden has issued an executive order preventing the acquisition of a critical piece of real estate by MineOne Cloud Computing Investment I L.P., a move that could have significant implications for the cryptocurrency sector.
- The decision comes at a time of growing concerns about foreign investments, particularly those linked to Chinese entities, and their potential impacts on U.S. security.
- Targeting MineOne Partners Limited, a British Virgin Islands-based company predominantly owned by Chinese citizens, the order highlights the significant risks posed by the planned real estate acquisition near Warren AFB.
President Biden’s executive order halting a real estate acquisition by a Chinese crypto mining company underscores the U.S. administration’s focus on national security and the potential risks posed by foreign investments in the crypto sector.
Biden’s Crypto Decision
According to findings presented by the President, the real estate acquisition planned by MineOne near Warren AFB carried significant risks. The property, detailed as Lot 1, Block 10 North Range Business Park 3, is in close proximity to Warren AFB, which hosts significant missile operations. Given the strategic importance of Warren AFB, the potential for espionage and surveillance activities facilitated by MineOne’s operations became an urgent concern. The completed transaction in June 2022 allowed MineOne to develop the property for private cryptocurrency mining, triggering alarms within U.S. security agencies about the potential use of foreign-sourced equipment for intelligence gathering. Following a public disclosure, the Committee on Foreign Investment in the United States (CFIUS) initiated an investigation that identified significant risks to national security associated with this purchase.
Long-term Implications of the Decision
Biden’s order not only directly prohibits the purchase, but also mandates MineOne and its affiliated companies to divest all legal and beneficial interests in the property within 120 days. In addition, the company is required to remove all equipment and improvements from the site within 90 days, with the process overseen and verified by CFIUS. The order also restricts MineOne and its affiliated companies from any physical or logical access to the property, equipment, or improvements until the divestment and removal operations satisfy CFIUS. Any attempt to circumvent or sabotage this directive will be met with stringent penalties by the Attorney General. Following this order, MineOne and its affiliates are obliged to fully cooperate with CFIUS, including providing regular updates on compliance efforts and timelines for divestment and removal actions. Non-compliance could lead to further sanction measures and penalties.
Conclusion
This executive order underscores the U.S. administration’s commitment to national security and its vigilance over foreign investments, particularly in the cryptocurrency sector. It sends a clear message to foreign entities about the potential risks and consequences of their investment activities, particularly those that could pose a threat to U.S. security. The long-term implications of this decision could shape the landscape of foreign investments in the U.S. crypto sector, potentially leading to increased scrutiny and regulatory oversight.
