US President Joe Biden issued an order banning the acquisition of certain real estate by MineOne Cloud Computing Investment I LP, citing national security concerns. The order, based on findings presented by the President, is intended to protect critical assets near Francis E. Warren Air Force Base (Warren AFB) in Cheyenne, Wyoming.
The President's order stems from evidence indicating that MineOne Partners Limited, a British Virgin Islands company majority-owned by Chinese nationals, and related entities planned to acquire real estate within a one-mile radius of Warren AFB. This real estate, specifically described as Lot 1, Block 10 North Range Business Park 3rd Filing, and the nature of the operations conducted by MineOne, pose potential risks to national security due to its proximity to a strategic missile base, a explained Biden.
MineOne acquired the real estate in June 2022 and subsequently developed it for specialized cryptocurrency mining operations, raising concerns about surveillance and espionage activities facilitated by foreign-sourced equipment. The Committee on Foreign Investment in the United States (CFIUS) became involved after a public briefing, which subsequently identified significant national security risks associated with the transaction.
President order prohibits the transaction outright, requiring MineOne and its affiliates to divest all legal and beneficial interests in the real estate within 120 days. Additionally, MineOne must remove all equipment and improvements related to its operations on the property within 90 days, subject to review by CFIUS.
Additionally, MineOne and its affiliates are prohibited from any physical or logical access to real property, equipment or improvements until divestment and withdrawal are completed to the satisfaction of CFIUS. Any attempt to evade or circumvent this order is strictly prohibited, as the Attorney General is authorized to enforce this order.
In response to this order, MineOne and its affiliates are required to cooperate fully with CFIUS, providing regular updates on compliance efforts and deadlines for completing divestment and withdrawal actions. Failure to comply with these requirements may result in additional enforcement action and sanctions.