Feds kick out Chinese crypto company in Cheyenne, mirroring local efforts (2024)

Wyoming leaders commended a decision by the Biden Administration to force a Chinese-affiliated crypto mining company to divest of property in Cheyenne near F.E. Warren Air Force Base. The administration declared MineOne Partners Ltd. a national security risk on Monday and is now giving it 90 days to remove all structures and equipment at the site and 120 days to sell the property.

It’s the latest in a growing antagonism between the federal government and the Chinese Communist Party, whose espionage efforts in recent years have put U.S. officials on high alert. The move will minimize risks at a moment when F.E. Warren AFB — one of only three U.S. bases with intercontinental ballistic capabilities, and an essential player in the nation’s nuclear triad and deterrence strategy — is in the process of recommissioning its nuclear arsenal.

The action dovetails with moves by state leaders. Wyoming legislators have peddled bills attempting to reduce opportunities for Chinese nationals to obtain property in the state. Some have run aground constitutional questions related to privacy and property rights, but one bill recently succeeded, and proponents say it functions as a vital complement to federal prerogatives.

SF 77 was signed into law this year and requires county clerks to report property transactions proximal to “critical infrastructure,” like F.E. Warren AFB, to the office of Homeland Security and state Division of Criminal Investigation. It gives authorities a way to ascertain the identity of land purchasers who are often obscured behind legal entities, and triggers investigation when foreign adversary affiliates are discovered, bill sponsor Senator Tara Nethercott, R-Laramie County, told the Star-Tribune.

“It threads the needle between private property rights and constitutionality, and it’s important because it allows for the collection of intelligence information to understand how our foreign adversaries operate within our state. It allows our state law enforcement to work with our federal partners to understand what type of state or federal laws may be being violated,” Nethercott said.

Nethercott welcomed the administration’s decision to expel MineOne, but says similar threats could theoretically go undetected without mechanisms like SF77.

The executive order against MineOne was made in coordination with the Committee on Foreign Investment in the United States, a body created by law in 2018 and composed of delegates from the departments of state, justice, energy and commerce, among others, which is charged to ensure that foreign investment does not undermine U.S. national security.

The committee has played a central role in the investigation of social media app TikTok, and it is set to have an outsize impact on the future of foreign investment in America. However, its scope is not all-encompassing, and Nethercott says her bill fills a critical gap.

“In my opinion, there is a gap in how our federal partners and the state learns of those transactions and what type of businesses may be operating within the bounds of critical infrastructure,” Nethercott said, noting that the CFIWS was initially triggered by a non-state report tip. “Had that not occurred, they would not have been aware of it. So how do we recognize that gap in our system to respond to it? SF77 is a solution to that gap.”

CFIWS did not explain what national security risks MineOne posed, but Nethercott conjected that the firm could theoretically function like a shield for espionage activities.

“Crypto mining in and of itself is not the threat, but a crypto mining operation could maybe provide a shield to other advanced technological systems because it requires a high use of power, which maybe could be camouflaged for other uses for high power consumption, like technological equipment that can achieve espionage purposes,” she said.

Governor Mark Gordon, a proponent of SF77, issued a statement supporting the administration’s divestment order.

“I am acutely aware and have been monitoring the concerns of surrounding property owners, as well as the potential threats to national security that this operation posed. I am pleased that the administration recognized the potential threat and took steps to ensure the security of our military installations and the safety of Wyoming residents. Protection of our infrastructure remains paramount to protecting our national security and must always be our highest priority,” he said in a statement.