A crypto mining company is suing an Arkansas county judge and prosecutors, claiming they are engaging in selective enforcement against crypto companies, Cointelegraph reported.
NewRays said in a complaint filed Sept. 26 in Arkansas District Court that Judge Allen Dodson and prosecutor Phil Murphy, among others, selectively enforced noise regulations against its business operations.
NewRays purchased the property in Faulkner County, Arkansas, for a crypto mining data center in October 2022, when there were no relevant zoning restrictions.
However, after complaints from residents, local laws set decibel limits and impose criminal sanctions for violations.
According to the complaint, the ordinance violates the Arkansas Data Center Act, passed in April 2023, which protects large computing and data mining operations from discriminatory regulations.
NewRays claims the defendants coordinated enforcement of the ordinance, possibly in favor of a civil lawsuit filed by residents.
The legal battle arose when NewRays tried to move the civil lawsuit to federal court, but the county district court claimed jurisdiction.
Justin Daniels, a partner at Baker Donelson, said targeting crypto companies is common due to Bitcoin’s reputation and criticism of its energy use.
However, the county government began discussing a “crypto mining ordinance” as early as June 2023, which was allegedly designed to discriminate against data centers and crypto mining operations.
Ordinance 23-20 was designed to apply only to NewRays, the complaint said, even though other businesses generate more noise.
NewRays asked the court to issue a preliminary and permanent injunction prohibiting all defendants from enforcing the ordinance.
Cointelegraph reached out to Judge Dodson for comment but did not immediately receive a response.