President Joe Biden issued an order blocking a Chinese-backed cryptocurrency mining firm from owning land near a Wyoming nuclear missile base, calling its proximity to the base a “national security risk” The Associated Press reported.
The order forces the divestment of property operated as a crypto mining facility near the Frances E. Warren Air Force Base. MineOne Partners Ltd., a firm partly backed by Chinese nationals, and its affiliates are also required to remove certain equipment on the site.
This comes as the U.S. is slated on Tuesday to issue major new tariffs on electric vehicles, semiconductors, solar equipment and medical supplies imported from China, according to a U.S. official and another person familiar with the plan.
The Monday divestment order was made in coordination with the U.S. Committee on Foreign Investment in the United States – a little-known but powerful government committee tasked with investigating corporate deals for national security concerns that holds power to force companies to change ownership structures or divest completely from the U.S.
The U.S. Department of the Treasury posted a press release titled: “Statement on the President’s Decision Prohibiting theAcquisition by MineOne Cloud Computing Investment I L.P. of Real Estate and the Operation of a Cryptocurrency Mining facility, in Close Proximity to Frances E. Warren Air Force Base”
Today President Biden issued an order prohibiting the purchase and requiring the divestment of certain real estate operated as a cryptocurrency mining facility located within one mile of Frances E. Warren Air Force Base (F.E. Warren AFB), as well as the requiring the removal of certain improvements and equipment at the property by MineOne Partners Limited, which is ultimately majority owned by nationals of the People’s Republic of China; MineOne Cloud Computing Investment I L.P.; MineOne Data Center LLC; and MineOne Wyoming Data Center LLC (collectively MineOne), as well as their affiliates.
MineOne acquired the property in June 2022 and then made improvements to allow for use of the property for specialized cryptocurrency mining operations within one mile of F.E. Warren AFB in Cheyenne, Wyoming, a strategic missile base and home to Minuteman III intercontinental ballistic missiles. The Committee on Foreign Investment in the United States (CFIUS or the Committee) reviews and investigated this transaction pursuant to authorities provided by Congress in the Foreign Investment Risk Review Modernization Act of 2018 (FIRRMA) to cover real estate transactions in close proximity to certain sensitive U.S. facilities, including F.E. Warren AFB.
“Today’s divestment order underscores President Biden’s steadfast commitment to protecting the United States’ national security. It also highlights the critical gatekeeper role that CFIUS serves to ensure that foreign investment does not undermine our national security, particularly as it related to the transactions that present risk to sensitive U.S. military installations a well as those specialized equipment and technologies,” said Secretary of the Treasure Janet L. Yellen.
ABC News reported MineOne purchased the land that is within one mile of the Air Force base in Cheyenne in 2022 and according to CFIUS, the purchase was not reported to the committee as required until after the panel received a public tip.
CFIUS directed the sale of the property within 120 days, and that within 90 days the company remove all structures and equipment on the site.
In my opinion, the person who tipped off the U.S. government about the Chinese backed cryptocurrency mining facility did the right thing.