Bitmain Under US Security Scrutiny Over Bitcoin Mining Hardware

Federal investigators have launched a sweeping review of the Chinese manufacturer Bitmain Technologies, the world’s leading supplier of Bitcoin BTC $85 168 24h volatility: 1.6% Market cap: $1.70 T Vol. 24h: $141.94 B mining equipment. The probe, known as Operation Red Sunset, is being led by the Department of Homeland Security and examines whether Bitmain’s hardware could pose risks of espionage or sabotage to US critical infrastructure.

Operation Red Sunset: Focus on espionage and grid security

The investigation centers on allegations that Bitmain’s mining machines could be remotely manipulated from China to enable surveillance or disrupt the US power grid. Inspectors have examined chips and firmware from Bitmain devices seized at US ports, and officials have scrutinized their deployment near sensitive locations, including military bases and government-linked facilities.

A Senate Intelligence Committee report in July warned that Bitmain’s devices present “several disturbing vulnerabilities” and could be controlled from China.

Political and Industry Implications Behind This

The probe spans both the Biden and early Trump administrations, reflecting bipartisan concern over Chinese tech influence in the US. Bitmain’s hardware has been deployed in multiple US mining operations, including a facility backed by two of President Donald Trump’s sons, American Bitcoin Corp.

Bitmain has denied any security vulnerabilities, stating that its products do not allow remote access or manipulation. Also, Gautier Lemyze-Young, a spokesman of American Bitcoin Corp., said the company conducts extensive security tests on the hardware. The company believes that Bitmain’s devices “are deployed within modern industrial security standards, they do not present a credible risk to the United States power grid or to national security,” according to a Bloomberg report.

Broader Regulatory Current Context Around China

The investigation coincides with broader US efforts to assess risks associated with Chinese technology in critical sectors. Authorities are also reviewing potential violations of tariffs and import taxes related to Bitmain’s hardware.

No findings have been made public, and the Department of Homeland Security has declined to comment on the status of the probe, only that the investigation is ongoing and active.

Besides, the Trump administration is “crypto-friendly,” but Bitcoin miners have been facing many challenges in 2025. The tariff war between the US and China could mean more than $100 million in tariff liabilities for some US miners, and, as a result, Bitmain even announced its plan to build a factory in the US to bypass the tariffs.

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