Security Fears Grow Over Chinese-Controlled Mining Operations
Concerns over Chinese-controlled bitcoin mining facilities have been intensifying after reports revealed several operations near sensitive U.S. sites. One facility powered by Bitmain’s machines was found near a Microsoft data center supporting the Pentagon, while another was situated close to an Air Force nuclear missile base in Cheyenne, Wyoming.
These findings raised alarms about the potential national security risks posed by foreign-controlled mining equipment.
In a Senate Intelligence Committee report, U.S. lawmakers warned that Bitmain’s devices could be remotely accessed and manipulated from China. Such vulnerabilities were flagged as serious threats to U.S. national security, especially if deployed in or near critical infrastructure.
As part of its investigation, the U.S. Department of Homeland Security (DHS) has conducted inspections of Bitmain equipment, including chip and firmware analyses on machines arriving at U.S. ports. The investigation, known as “Operation Red Sunset,” also expanded to examine potential tariff and import tax violations. The investigation’s findings remain undisclosed, leaving the inquiry’s current status unclear.
Bitmain Denies Allegations, Defends Compliance
In response to the allegations, Bitmain firmly denied any wrongdoing. The company claimed it complies with all U.S. laws and regulations, labeling the accusations of remote manipulation as “unequivocally false.” Bitmain also rejected claims of ties to the Chinese government and attributed past equipment detentions to routine Federal Communications Commission (FCC) procedures.
The investigation has drawn attention in Washington, especially after American Bitcoin, a venture partly backed by the Trump family, purchased 16,000 Bitmain machines for $314 million. Despite the investigation, American Bitcoin conducted security tests on the machines and found no vulnerabilities.
The probe into Bitmain’s equipment underscores the growing concern over foreign influence in U.S. infrastructure and its potential risks to national security.