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A crypto mining company is suing an Arkansas County judge and prosecutor over what it claims is selective enforcement action against crypto firms.&nbsp;
In a complaint filed with the district court of Arkansas on Sept. 26, Bitcoin mining firm NewRays alleges that Judge Allen Dodson, prosecuting attorney Phil Murphy, and others are selectively enforcing <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/marathon-digital-manager-acquitted-texas-noise-charges-amid-complaints" rel="null" target="null" text="null" title="null">noise</a> legislation targeting its business operations.
NewRays acquired the property in Faulkner County, Arkansas, in October 2022 to operate a data center for crypto mining at a time when there were no relevant zoning restrictions.
However, following complaints from residents, local laws were enacted, imposing decibel limits and criminal sanctions for violations.
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 <img alt="Bitcoin miner claims judge, prosecutor targeted firm with noise laws" name="" src="https://s3.cointelegraph.com/uploads/2024-10/0192467e-4676-782c-8aaf-db28fdde8395">
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 Screenshot from the complaint. Source: Law.com
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According to the complaint, the <a data-ct-non-breakable="null" href="https://www.faulknercounty.org/images/documents/2023%20Meeting%20Info/07.2023/07.11/PO%2023-20.pdf" rel="null" target="null" text="null" title="null">ordinance</a> — a local law or decree by a municipality — allegedly violates the Arkansas Data Centers Act enacted in April 2023, which protects large computing and <a data-ct-non-breakable="null" href="https://cointelegraph.com/learn/what-is-data-mining" rel="null" target="null" text="null" title="null">data mining</a> operations from discriminatory regulations.
NewRays claims the defendants coordinated to enforce the ordinance, potentially to benefit a civil lawsuit filed by residents.
Legal complications arose when NewRays attempted to remove the civil lawsuit to federal court, but the county district court claimed jurisdiction.
Justin Daniels, a partner at Baker Donelson, <a data-ct-non-breakable="null" href="https://www.law.com/2024/09/30/arkansas-judge-prosecutor-accused-of-targeted-crypto-miner-crackdown/" rel="null" target="null" text="null" title="null">told</a> Law.com that the practice of targeting crypto companies is common due to Bitcoin’s reputation and criticism for the amount of <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/japanese-power-giant-tepco-explores-green-bitcoin-mining-report" rel="null" target="null" text="null" title="null">energy</a> it uses.
Data training centers for artificial intelligence do the same thing, “yet I don’t hear the criticism,” he said before adding:&nbsp;
<blockquote>
 “The reason for that is that the general consensus is that AI has a lot of value and a lot of people think that Bitcoin doesn’t have value.”&nbsp;
</blockquote>
Related: <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/arkansas-crypto-mining-bills-heading-governor-approval" rel="null" target="null" text="null" title="null">Arkansas bills reining in crypto miners head for governor approval</a>
However, the county began <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/arkansas-rush-to-pass-noise-regulations-crypto-miners" rel="null" target="null" text="null" title="null">discussing</a> a “crypto mine ordinance” as early as June 2023, which was intentionally designed to discriminate against data centers and crypto mining operations, according to the complaint.&nbsp;
The complaint alleges that “Ordinance 23-20” was intended to apply only to NewRays, despite other businesses generating more noise.
NewRays has requested that the court enter preliminary and permanent injunctive relief&nbsp;restraining all defendants from enforcing the ordinance.&nbsp;
Cointelegraph contacted Judge Dodson for comment but did not receive an immediate response.
Magazine: <a data-ct-non-breakable="null" href="https://cointelegraph.com/magazine/ai-more-power-hungry-bitcoin-profits-pose-risks-bitcoin-miners/" rel="null" target="null" text="null" title="null">AI may already use more power than Bitcoin — and it threatens Bitcoin mining</a>

Bitcoin miner claims judge, prosecutor targeted firm with noise laws

Cointelegraph

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