In a move to safeguard national security, President Joe Biden has signed an executive order prohibiting a Chinese-funded crypto mining company from owning land near the Francis E. Warren Air Force Base in Wyoming. The order requires MineOne Partners Ltd., a company partially owned by the Chinese state, to sell the property on which its crypto mining facility operates.

The divestment order was made in collaboration with the U.S. Committee on Foreign Investment in the United States (CFIUS), an agency that investigates corporate deals for national security issues and has the power to mandate changes to companies' operations. The order cited the national security risks associated with the specialized, foreign-sourced equipment, which could potentially facilitate surveillance and espionage activities. The Treasury Department deemed these risks a significant national security threat.

MineOne Partners Limited, a British Virgin Islands company mostly owned by Chinese nationals, intended to purchase real estate within one mile of the Francis E. Warren Air Force Base. The deal, made in June 2022, included Lot 1, Block 10 North Range Business Park 3rd Filing, which was created specifically for cryptocurrency mining operations. Such activities raised concerns about possible surveillance and spyware.

The President's decree prohibits the purchase and requires MineOne and its subsidiaries to sell all legal and beneficial owners in the property within 120 days. Additionally, MineOne must remove all related equipment and improvements within 90 days, provided that CFIUS confirms it. The order also restricts MineOne from any physical or logical access to the property, equipment, or improvements until divestment and removal are completed to CFIUS's satisfaction.

The Attorney General has been authorized to ensure that the President's order is followed, which expressly prohibits any attempt to circumvent the divestment and removal requirements. Non-compliance with these measures is likely to result in the implementation of additional enforcement actions and penalties. The Secretary of the Treasury, who also chairs CFIUS, emphasized the committee's role in ensuring that foreign investment does not jeopardize national security, particularly transactions involving sensitive U.S. military installations and specialized equipment and technologies.

This move by the U.S. government highlights the growing concerns surrounding foreign involvement in critical infrastructure and the potential national security risks associated with such investments. As the crypto mining industry continues to evolve, policymakers will likely maintain a close watch on foreign entities' activities near sensitive military installations to safeguard national interests.