Crypto Mining Company NewRays Sues Arkansas Officials

NewRays, a Bitcoin mining company in Arkansas is fighting back against a County judge and prosecutor. The company is suing Arkansas officials, claiming they are using an ordinance to hinder its operations. This is just another case reminding us how crypto companies are treated by government officials.

In October 2022, NewRays purchased land in Faulkner County, Arkansas, to run a data center for crypto mining. At the time, no zoning restrictions affected their business. However, after local residents complained about noise, new laws were quickly passed to limit the noise levels. These laws also added criminal penalties for breaking them. NewRays argues that this is a clear violation of the Arkansas Data Centers Act, a law meant to protect large data operations from unfair treatment.

The Fight Over the Noise Ordinance

NewRays believes that Judge Allen Dodson and prosecutor Phil Murphy are unfairly enforcing the new noise laws just to target their business. The firm thinks this is all about a civil lawsuit filed by nearby residents. When NewRays tried to move the lawsuit to federal court, the local court claimed it had the right to keep the case. Now, the company is asking for an injunction to stop the enforcement of these laws while the legal battle continues.

Crypto Mining vs. Other Industries

Justin Daniels, a legal expert, believes crypto companies like NewRays are being unfairly picked on. He explained that Bitcoin mining often gets a bad reputation for using a lot of energy. But nobody talks about artificial intelligence which uses just as much, if not more energy, and they don’t get nearly the same criticism. “The difference,” Daniels says, “is that people see AI as valuable, while many still aren’t sure if Bitcoin really has worth.” It’s this kind of bias that seems to be driving Faulkner County’s actions, which are clearly aimed at crypto miners.

Company’s Request to Court

NewRay bought the property in October 2022 to run crypto mining operations when there were no such noise laws. The company believes these laws are specifically designed to target its business. There are other companies in the area who create similar noise but nobody has a problem with them. That is why the company is requesting the court to intervene and stop this targeted attack on its business.