Bitcoin mining firm NewRays is at the center of a legal battle, taking on a judge and prosecutor for allegedly unfairly enforcing noise legislation against the company. In its complaint, NewRays claims that the laws were selectively created to target the mining firm, despite other companies generating more noise.
The lawsuit, filed on September 26, names Judge Allen Dodson, prosecuting attorney Phil Murphy, and others as defendants, accusing them of singling out NewRays with noise regulations.
NewRays purchased property in Arkansas with plans to establish a data center for cryptocurrency mining in 2022. However, the company alleges that local noise ordinances were specifically designed to target their operations. The firm asserts that Ordinance 23-20 was crafted with NewRays in mind, ignoring other noisier commercial and industrial activities in the area.
The genesis of the conflict stemmed from complaints by neighbors regarding the noise produced by NewRays’ operations. This led to a decrease in property values in the vicinity, with failed attempts to sell adjacent land due to the disturbances caused by the mining activities. NewRays made efforts to address the noise concerns by installing sound barriers at the behest of a neighbor, but these measures were reportedly insufficient to appease the complainants.
A similar noise-related controversy involving crypto mining occurred in Texas, where Marathon Digital faced multiple charges due to disruptive noise levels. Local residents complained of health issues and sleep disturbances caused by the incessant noise from the mining facility. Despite the uproar, the site manager, David Fischer, was exonerated of all noise violations by a Texas jury.
NewRays’ latest legal action alleges that the Faulkner County Quorum Court attempted to pass legislation specifically targeting crypto mining activities. However, the lack of attendance at the meeting led to the dissolution of the proposed law.
Justin Daniels, a prominent figure in the blockchain and digital assets practice, suggested that discriminatory enforcement against crypto-related activities is not unprecedented, given the negative stigma associated with the industry. He pointed out the double standards applied to energy-intensive operations in different sectors, where cryptocurrency mining often faces unwarranted criticism despite its economic value.
Edited by Stacy Elliott.
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**In Conclusion…**
The legal battle between NewRays and the judicial authorities highlights the challenges faced by cryptocurrency mining firms in navigating regulatory landscapes. As the industry continues to evolve, issues such as noise pollution and selective enforcement may pose significant hurdles for companies operating in this space. It is essential for stakeholders to engage in constructive dialogue and find mutually beneficial solutions to address concerns while promoting innovation and economic growth in the digital assets sector.
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