Bitcoin Mining Firm Sues Judge and Prosecutor Over Alleged Targeting with Noise Ordinance

A Bitcoin mining company, NewRays, has filed a lawsuit against an Arkansas County judge and a prosecuting attorney, claiming they are selectively enforcing noise regulations to target its operations. The complaint, submitted to the district court of Arkansas on September 26, accuses Judge Allen Dodson and Prosecutor Phil Murphy of unfairly applying local noise laws against NewRays.

NewRays purchased property in Faulkner County in October 2022 to establish a data center for cryptocurrency mining, when there were no applicable zoning restrictions. However, following noise complaints from nearby residents, local officials enacted new laws imposing strict decibel limits and penalties for violations.

The company argues that these regulations infringe upon the Arkansas Data Centers Act, passed in April 2023, which is designed to protect large computing and data mining operations from discriminatory legislation. NewRays claims the defendants worked together to enforce the noise ordinance, potentially to support a civil lawsuit initiated by local residents.

When NewRays attempted to move the civil case to federal court, the county district court asserted its jurisdiction over the matter. Justin Daniels, a partner at Baker Donelson, noted that targeting cryptocurrency companies is a common trend, largely due to Bitcoin's controversial energy consumption, while similar scrutiny is not often applied to AI data centers.

The complaint further alleges that "Ordinance 23-20" was specifically crafted to target NewRays, even though other local businesses produce more noise. NewRays is seeking both preliminary and permanent injunctive relief to prevent the enforcement of the ordinance.

Cointelegraph reached out to Judge Dodson for comment but did not receive an immediate reply.