President Joe Biden has signed a decision that will affect the cryptocurrency space. In a decisive move that underscores the US administration’s prioritization of national security, it issued an executive order blocking the acquisition of a critical piece of real estate by MineOne Cloud Computing Investment I LP. The decision comes amid growing concerns about foreign investments, especially those linked to Chinese entities, and their potential impact on U.S. security.
Biden’s cryptocurrency decision
The president’s order specifically targets MineOne Partners Limited, a British Virgin Islands-based company predominantly owned by Chinese citizens. According to findings presented by the president, MineOne’s planned real estate acquisition within one mile of Warren AFB posed significant risks. The property in question is detailed as Lot 1, Block 10 North Range Business Park 3. Application. Given the strategic importance of Warren AFB, which hosts significant missile operations, the potential for espionage and surveillance activities facilitated by MineOne operations has become an urgent concern.
The transaction, completed in June 2022, enabled MineOne to develop property for private cryptocurrency mining. This raised alarms in US security agencies about the potential for foreign-sourced equipment to be used to gather intelligence. Following public notice, the Committee on Foreign Investment in the United States (CFIUS) launched an investigation that identified significant risks to national security in connection with this acquisition.
Long-term consequences of the decision
Biden’s order not only outright bans the acquisition, but also mandates MineOne and its affiliates to divest all legal and beneficial interests in the real estate within 120 days. Additionally, CFIUS must audit and verify the process and the company must remove all equipment and improvements from the site within 90 days.
In addition, the order restricts MineOne and its affiliates from any physical or logical access to the property, equipment, or improvements until disposition and removal are completed to the satisfaction of CFIUS. Any attempt to circumvent or undermine this directive will be met with strict sanctions by the Attorney General’s Office.
Following this order, MineOne and its affiliates are required to fully cooperate with CFIUS, including providing regular updates on compliance efforts and timelines for disposition and removal actions. Non-compliance may lead to further enforcement measures and penalties.
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