China’s Bitcoin mining machine manufacturing giant Bitmain Technologies has become the focus of a federal government investigation in the United States. The investigation aims to assess whether Bitmain’s products pose a threat to US national security.
According to Bloomberg, a federal review in the US last year found that the use of mining machines manufactured by Bitmain near a US military base raised “significant national security concerns.” The Committee on Foreign Investment in the United States (CFIUS) found that these foreign devices could potentially be used for surveillance and espionage activities.
In July this year, the report of the Senate Intelligence Committee again mentioned Bitmain, stating that its equipment could be controlled by the Chinese Communist Party and pose several alarming security risks to the US.
According to a US official and six other sources familiar with the matter who spoke to Bloomberg, Bitmain’s hardware is the core of an investigation called “Operation Red Sunset” led by US Homeland Security agents.
The official and sources revealed that this investigation, led by the Department of Homeland Security, aims to determine if these machines can be remotely controlled and used for espionage or to disrupt the US power grid. The Homeland Security investigation, accompanied by policy discussions within the White House National Security Council, started during the Biden administration and continued at least into the early days of the Trump government.
To gain a deeper understanding of Bitmain’s mining machines, the US federal government has taken measures to intercept some machines at US ports. It is currently unclear if these interceptions are part of the “Operation Red Sunset” investigation.
In some cases, investigators have dismantled Bitmain’s machines to test if their chips and codes have malicious functionality, as disclosed by a US official and two sources. They declined to reveal specific findings. The official and sources also mentioned that investigators are examining potential tariff and customs violations.
Bitmain stated in an email that allegations that the company’s machines can be controlled remotely from China are “absolutely false,” and the company “strictly complies with US laws and regulations and has never engaged in any activities that harm US national security.” Bitmain also mentioned that the company was unaware of the federal investigation into “Operation Red Sunset” and had no information regarding tariffs or other import tax investigations.
Bitmain further explained that the seizure of its machines was related to concerns raised by the Federal Communications Commission (FCC), and “no abnormal conditions were found.” The company has not received any further notice of investigation.
When asked about the latest developments in the investigation, a senior government official stated, “The US government is concerned about these types of threats and is continuously monitoring them closely.”
Homeland Security spokesperson Mike Alvarez stated, “We do not comment on ongoing investigations.”
This investigation has once again raised concerns about Bitcoin-related issues. Over the years, Bitmain and its affiliated companies have been a focal point of public safety concerns. Despite official warnings issued by the US government, hundreds of thousands of Bitmain mining machines have been in operation across the US over the past decade.