Bitmain, the world’s leading supplier of bitcoin mining equipment, has come under scrutiny from U.S. authorities due to concerns about national security.
The Department of Homeland Security (DHS), through an inquiry known as “Operation Red Sunset,” reportedly investigated whether Bitmain’s mining machines could be remotely manipulated to spy or disrupt the U.S. power grid.
Heightened concerns over Chinese mining operations
Concerns escalated after a New York Times report revealed that Chinese-linked bitcoin mining facilities, equipped with Bitmain hardware, were operating near critical U.S. sites, such as a Microsoft data center serving the Pentagon and an Air Force missile base in Wyoming.
A Senate Intelligence Committee report in July further warned that Bitmain devices posed “several disturbing vulnerabilities” and could potentially be controlled from China.
Details of the investigation
Operation Red Sunset involved chip and firmware inspections of Bitmain equipment stopped at U.S. ports.
The probe ran alongside policy discussions at the White House’s National Security Council, spanning both the Biden and early Trump administrations. Authorities also reportedly examined possible tariff and import tax violations related to Bitmain’s hardware.
Officials have not disclosed the outcome of the investigation, and the DHS did not comment on the matter.
Bitmain and industry responses
Bitmain firmly denied the allegations, stating to Bloomberg:
“Bitmain strictly complies with U.S. and applicable laws and regulations and has never engaged in activities that pose risks to U.S. national security.”
The company said claims of remote control were “unequivocally false” and denied knowledge of Operation Red Sunset or related tariff inquiries.
Bitmain attributed any equipment detentions to routine Federal Communications Commission checks.
Political scrutiny intensifies
The investigation has drawn renewed attention as President Donald Trump’s sons increased their involvement in U.S. bitcoin mining.
Their venture, American Bitcoin, purchased 16,000 Bitmain machines for $314 million. A spokesperson for American Bitcoin told Bloomberg:
“American Bitcoin takes national security, grid stability and operation security extremely seriously,” adding that no vulnerabilities allowing remote access were found during security testing.
Trump officials have rejected claims that the family’s business interests could affect federal investigations.
