US Cites "Spying Concerns" in Banning Chinese Crypto Miner Near Nuclear Base

Citing fears about espionage, US President Joe Biden has ordered a Chinese-owned bitcoin miner and its partners to sell land they hold close to a US nuclear missile station.

MineOne Partners, which is said to be mostly controlled by Chinese nationals by the White House, has been given 120 days to sell the land on which it operates a cryptocurrency mining business.

The area is just 1.6 km (less than a mile) from an air force facility in Wyoming that houses intercontinental ballistic missiles.

Nuclear intercontinental ballistic missiles, known as Minuteman IIIs, are stationed at the Francis E. Warren Air Force Base in Wyoming.

In 2022, MineOne purchased a plot of property near the military installation, on which it subsequently installed bitcoin mining hardware.

The White House stated that the corporation had not informed the Committee on Foreign Investment in the US (CFIUS), a strong committee that reviews agreements for potential dangers to national security. A member of the public provided a tip, which led authorities to become aware of the transaction.

The US Treasury Department-led interagency panel concluded that the transaction had consequences for national security.

Treasury Secretary Janet Yellen stated in a statement that President Biden's decision to order MineOne to sell the land "highlights the critical gatekeeper role that CFIUS serves to ensure that foreign investment does not undermine our national security."

US politicians' concerns over Chinese property purchases close to key military installations have grown. Just one day before the Biden administration is scheduled to impose steep tariffs on a number of Chinese goods, including electric cars, the White House has made its most recent pronouncement.

Cryptocurrency and National Security

The proximity of cryptocurrency mining operations to sensitive military installations presents unique security challenges. These operations, drawn by cheap electricity and resources, risk espionage and unauthorized access to classified information, posing threats to national security. Additionally, their high energy consumption strains local infrastructure, potentially compromising the reliability of essential services for military readiness.

The decentralized and pseudonymous nature of cryptocurrencies exacerbates security concerns. Their use in illicit activities, including money laundering and terrorist financing, poses risks near military facilities. To address these challenges, governments must implement stricter regulations and oversight mechanisms for cryptocurrency mining operations near critical infrastructure, enhancing scrutiny of foreign investments and monitoring of energy consumption.

Overall, the emergence of cryptocurrency mining operations near sensitive military installations underscores the need for a comprehensive approach to address their security implications. By proactively identifying and mitigating potential risks, governments can safeguard critical infrastructure and maintain the integrity of national security in an increasingly digital world.

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