Bitcoin mining company NewRays filed a complaint with the Arkansas District Court on September 26, accusing Judge Allen Dodson, prosecutor Phil Murphy and others of selectively enforcing noise laws against their business operations. NewRays has asked the court for preliminary and permanent injunctions prohibiting all defendants from enforcing the ordinance.
In October 2022, NewRays acquired a property in Faulkner County, Arkansas, for operating a crypto mining data center without relevant zoning restrictions at the time. However, after residents complained, local laws were enacted to limit noise decibels and impose criminal sanctions for violations.
According to the complaint, the ordinance allegedly violated the Arkansas Data Center Act, enacted in April 2023, which protects large computing and data mining operations from discriminatory regulations.
NewRays claims that the defendants coordinated the enforcement of the ordinance, possibly to benefit civil lawsuits filed by residents. A legal dispute arose when NewRays attempted to transfer the civil lawsuit to federal court, but the county district court claimed jurisdiction.
Justin Daniels, a partner at law firm Baker Donelson, told Law.com that such actions against cryptocurrency companies are common due to criticism of Bitcoin’s reputation and its energy consumption. (Cointelegraph)