Bitcoin-miner Bitmain Faces Federal Investigation Over National Security Issues: Report

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Bitcoin-miner Bitmain Faces Federal Investigation Over National Security Issues: Report

Bitmain Technologies Ltd., the Chinese manufacturer behind most of the world’s Bitcoin mining machines, has been the focus of a federal investigation assessing whether its products pose national security risks, according to Bloomberg reporting. 

The inquiry, dubbed “Operation Red Sunset,” led by the Department of Homeland Security, reportedly examined whether the company’s machines could be remotely manipulated for espionage or sabotage of critical US infrastructure. 

Bitmain denies these capabilities, but investigators have reportedly tested its equipment at ports and dissected chips and code to assess potential threats.

The company’s hardware has long attracted scrutiny. 

A 2017 Bitcoin Magazine report suggested Antminer devices contained code allowing remote shutdown, which Bitmain said was a theft-prevention feature later patched. Similar concerns resurfaced in 2019.

In May 2024, then-President Joe Biden blocked a crypto mining facility near a Wyoming nuclear missile base, citing national security risks linked to foreign-sourced mining equipment. The Committee on Foreign Investment in the United States (CFIUS) said the presence of foreign mining devices near sensitive facilities could facilitate surveillance and espionage.

Bitmain has repeatedly stated it complies with US law and has no ties to the Chinese government. It also denied awareness of “Operation Red Sunset” or any import-related investigations.

The Commerce Department blacklisted Bitmain’s AI affiliate, Sophgo Technologies, in January 2025 over alleged dealings with Huawei, further raising concerns about the company’s ties to Beijing.

Bitmain ties with the Trump family

The investigation intersects with the Trump family’s crypto ventures. Eric and Donald Trump Jr. invested in American Bitcoin, a company that recently acquired 16,000 Bitmain devices for $314 million, paid in Bitcoin, per Bloomberg.

The startup plans to operate 76,000 mining machines across the US and Canada. American Bitcoin insists its operations follow strict security standards and that Bitmain hardware poses no credible risk to the US power grid or national security.

The issue has drawn bipartisan attention. A July 2025 Senate Intelligence Committee report highlighted “disturbing vulnerabilities” in Bitmain devices and warned that facilities using them near power plants or military installations present “an unacceptable risk.” 

GOP Representative Zach Nunn also requested CFIUS review specialized chips in foreign mining hardware to assess broader policy implications.

As the US continues to monitor foreign crypto technology, the case underscores the tension between rapidly expanding digital asset industries and national security concerns, especially when high-profile political figures are involved.

This post Bitcoin-miner Bitmain Faces Federal Investigation Over National Security Issues: Report first appeared on Bitcoin Magazine and is written by Micah Zimmerman.

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