US President Joe Biden has issued an order prohibiting the acquisition of certain real estate by MineOne Cloud Computing Investment I LP, citing national security concerns. The order, based on findings outlined by the President, is intended to safeguard critical assets near Francis E. Warren Air Force Base (Warren AFB) in Cheyenne, Wyoming.
The President's order arises 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 one mile of Warren AFB. This property, specifically described as Lot 1, Block 10, Third Presentation of the North Range Business Park, and the nature of the operations carried out by MineOne, poses potential risks to national security due to its proximity to a strategic missile base, Biden explained. .
MineOne acquired the real estate property in June 2022 and subsequently developed it for specialized cryptocurrency mining operations, raising concerns about surveillance and espionage activities facilitated by foreign-origin equipment. The Committee on Foreign Investment in the United States (CFIUS) became involved after a public disclosure, which later 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 ownership 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 verification by CFIUS.
Additionally, MineOne and its affiliates are prohibited from any physical or logical access to the real property, equipment or improvements until the divestiture and removal is completed to the satisfaction of CFIUS. Any attempt to evade or circumvent this order is strictly prohibited, and the Attorney General is authorized to enforce it.
In response to this order, MineOne and its affiliates must cooperate fully with CFIUS, providing regular updates on compliance efforts and timelines for completing divestiture and removal actions. Failure to comply with these requirements may result in further enforcement actions and penalties.
