Bitcoin-miner Bitmain Is Facing Federal Investigation Over National Security Issues
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Bitcoin-miner Bitmain Is Facing Federal Investigation Over National Security Issues
"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."
"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."
Federal investigators conducted Operation Red Sunset, led by the Department of Homeland Security, to assess whether Bitmain's Bitcoin mining machines could be remotely manipulated for espionage or sabotage of critical U.S. infrastructure. Investigators reportedly tested equipment at ports and dissected chips. Earlier reports alleged Antminer devices contained remote-shutdown code, which Bitmain said was a theft-prevention feature later patched. In May 2024, a crypto facility near a Wyoming missile base was blocked and CFIUS warned foreign mining devices near sensitive sites could enable surveillance. Bitmain denies government ties and says it complies with U.S. law; Commerce blacklisted affiliate Sophgo over alleged Huawei dealings. The probe overlaps with American Bitcoin's purchase of 16,000 Bitmain devices for $314 million in Bitcoin.
Read at Bitcoin Magazine
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