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In summary
- Bitcoin Mining company NewRays sued a judge and prosecutor, alleging they selectively enforced noise legislation against the company.
- NewRays claimed that the noise ordinances were created specifically to target the mining company.
- The lawsuit contends that Ordinance 23-20 was intended to apply only to NewRays, even though other companies create more noise.
Bitcoin mining company NewRays is suing a judge and prosecutor, alleging they selectively enforced noise legislation against the company. In the complaint, NewRays claims that even though other companies generate more noise than it, laws were created specifically to target the mining company.
The complaint, filed on September 26, alleges that Judge Allen Dodson, prosecutor Phil Murphy and other defendants specifically and unfairly targeted NewRays with noise legislation.
NewRays acquired property in Arkansas to begin its Cryptocurrency mining data center in October 2022. However, this occurred before a number of local noise ordinances were implemented. The mining company believes that these ordinances were created to directly target the company.
“Ordinance 23-20 was intended to apply only to NewRays, and not to any other person or entity,” the company writes in the lawsuit, “despite the presence of numerous other commercial and industrial applications that generate more noise than NewRays ”.
This occurred after neighbors complained about the constant noise NewRays generated.
According to local news outlet KATV, attempts to sell land adjacent to the mining company’s location have failed and nearby property values have decreased due to noise. Since the initial 2023 lawsuit, NewRays has installed sound barriers requested by a neighbor. However, according to local reports, this did not completely solve the problem.
Previously in Texas, cryptocurrency miner Marathon Digital had 12 noise charges filed against the company’s site manager. Neighbors complained that the miners’ constant fans caused health problems such as headaches, vertigo, nausea, and sleep disorders; local residents compared it to “living in a nightmare.” A Texas jury later acquitted David Fischer, the site manager, of all noise violations charged against him.
NewRay’s new complaint claims that the Faulkner County Quorum Court attempted to create a law specifically targeting cryptocurrency mining. However, not enough people attended the meeting, so it was dissolved.
Justin Daniels, co-chair of the Am Law 100 firm’s Blockchain and digital assets practice, told Law.com that the selective enforcement due to cryptocurrencies’ poor reputation does not surprise him.
“Bitcoin mining receives a lot of criticism for the amount of energy it uses,” Daniels explained. “But data training centers for artificial intelligence do the same thing, however, I don’t hear the criticism. The reason for this is that there is a general consensus that AI has a lot of value and many people think that Bitcoin has no value. “
Edited by Stacy Elliott.
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