The preliminary injunction applies to the plaintiffs in Jones Eagle LLC v. Arkansas Department of Agriculture.

By Drew Viguet
National Agricultural Law Center
U of A System Division of Agriculture

Dec. 16, 2024

Fast facts:

• Arkansas halted from enforcing foreign ownership laws against Jones Eagle LLC
• The Dec. 9 preliminary injunction followed a 14-day temporary restraining order

FAYETTEVILLE, Ark. — A federal judge in Arkansas has halted enforcement of the state’s foreign ownership restrictions for plaintiffs owning a crypto-mining business.

Jones Eagle LLC, which operates near DeWitt, Arkansas, and mines digital assets like cryptocurrency, came under investigation by the Arkansas Department of Agriculture and Arkansas Attorney General following the state enacting Act 636 and 174 during the 2023 legislative session. Both acts involve restriction of foreign ownership of U.S. land, and Act 174 specifically prohibits foreign-owned entities from acquiring or holding any interest in a digital mining business in the state. Qimin “Jimmy” Chen, who was born in China and is a naturalized American citizen, exercises control over Jones Eagle as sole owner of Eagle Asset Holding, Inc.

Gov. Sarah Huckabee Sanders issued a press release in December 2023 stating that Jones Eagle was under investigation for potentially violating state foreign ownership restrictions, as the entity “may have significant ties to China.”

Jones Eagle filed a lawsuit against the state of Arkansas in November 2024, claiming the investigation was unconstitutional and requesting a temporary restraining order and preliminary injunction. Judge Kristine Baker of the U.S. District Court for the Eastern District of Arkansas issued a temporary restraining order for 14 days on Nov. 25, and on Dec. 9 issued a preliminary injunction. The decision renders Acts 636 and 174 unenforceable against Jones Eagle until further notice from the court.

The preliminary injunction order is sealed — which means it is not accessible to the public — to protect Jones Eagle’s confidential business details. However, the Notice of Preliminary Injunction Order can be viewed online.

“In recent years, we’ve seen a dramatic increase in national interest and activity regarding the topic of foreign ownership of U.S. land, and particularly agricultural land,” said Harrison Pittman, director of the National Agricultural Law Center. “It’s an extremely active issue at both state and federal levels, although there are currently no federal laws restricting foreign persons, entities, or governments from acquiring or holding private U.S. agricultural land.”

Almost half of all U.S. states have some kind of law limiting foreign ownership. In 2023, Arkansas became the first state to enforce a foreign ownership law when it ordered a subsidiary of Syngenta Seeds, another Chinese-owned company, to divest itself of farmland in Arkansas.

To read the full news release, click here.