Bitmain Technologies is reportedly under a federal investigation, dubbed Operation Red Sunset, to determine whether its Bitcoin mining machines pose a threat to U.S. national security and critical infrastructure.
Federal Probe and Scope
According to a Bloomberg report citing anonymous sources, the Department of Homeland Security (DHS) has led a months-long inquiry into Bitmain, the Chinese manufacturer that supplies most of the world's Bitcoin miners. The investigation examines whether Bitmain's devices can be remotely controlled for espionage or used to sabotage the U.S. power grid, as well as potential tariff and import tax violations. DHS spokesperson Mike Alvarez declined to comment. The probe gained heightened attention due to a contract to sell 16,000 miners to American Bitcoin Corp., a venture backed by Donald Trump's sons, Eric and Donald Trump Jr.
Security Vulnerabilities
Concerns have circulated in Washington for years. In July, a Senate Intelligence Committee report warned that Bitmain's devices present 'several disturbing vulnerabilities' and noted that facilities using them are often near critical sites, with machines capable of being remotely controlled by Bitmain personnel in China. A previous federal review raised 'significant national security concerns' over Bitmain machines near a U.S. military base. In May 2024, President Joe Biden blocked a Chinese-owned crypto mining site near a Wyoming Air Force base over similar risks.
Trump Family Conflicts of Interest
The Trump family's business connection has sparked conflict-of-interest concerns, especially as President Trump pledged to make America the 'crypto capital of the world.' Richard Painter, former White House ethics counsel, warned of 'great danger.' The White House denied any impropriety. Bitmain rejected allegations, saying it 'strictly complies with U.S. laws.' American Bitcoin Corp. defended its hardware, stating extensive security tests found no remote access issues. The status of Operation Red Sunset remains unclear, with a senior official stating the government is 'constantly monitoring threats.'