Bitcoin Mining Firm NewRays Files Lawsuit Alleging Selective Enforcement of Noise Legislation
Bitcoin mining firm NewRays has taken legal action against a judge and prosecutor, accusing them of unfairly enforcing noise legislation against the company. The complaint, filed on September 26, claims that Judge Allen Dodson, prosecuting attorney Phil Murphy, and other defendants singled out NewRays with specific noise ordinances.
NewRays had purchased property in Arkansas to establish a data center for cryptocurrency mining in October 2022, prior to the implementation of local noise regulations. The company believes that these ordinances were tailored to target them directly.
The lawsuit states, “Ordinance 23-20 was intended to apply only to NewRays, and no other person or entity, despite the presence of numerous other commercial and industrial applications generating more sound than does NewRays.” This allegation comes after complaints from neighbors about the noise generated by NewRays.
According to reports from local news outlet KATV, attempts to sell adjacent land to the mining firm have been unsuccessful, and property values in the vicinity have declined due to the noise. Despite NewRays installing sound barriers as requested by a neighbor, the issue has not been fully resolved.
In a similar case in Texas, crypto miner Marathon Digital faced multiple noise charges, with neighbors reporting health problems such as headaches, vertigo, nausea, and sleep disturbances caused by the constant noise from the mining operation. The site manager, David Fischer, was acquitted of all noise violations by a Texas jury.
NewRays’ latest complaint alleges that the Faulkner County Quorum Court tried to introduce a law specifically targeting crypto mining, but the lack of attendance led to the dissolution of the proposal.
Justin Daniels, co-chair of a prominent law firm’s blockchain and digital assets practice, commented on the selective enforcement against crypto mining, attributing it to the negative reputation associated with Bitcoin’s energy consumption. Daniels noted, “Bitcoin mining receives criticism for its energy usage, yet data training centers for artificial intelligence operate similarly without facing the same scrutiny. This bias stems from differing perceptions of the value of Bitcoin compared to AI.”
Edited by Stacy Elliott.