Bitcoin News Update: US Investigates Whether Bitmain Devices Pose Threat to Power Grid, Raising Concerns Over Espionage

The United States government has initiated a comprehensive inquiry into Bitmain Technologies Ltd., a leading Chinese producer responsible for the majority of global Bitcoin-mining equipment, due to fears that its products may threaten national security, including the potential for espionage or disruption of vital infrastructure. This investigation, known as "Operation Red Sunset," is being coordinated by the Department of Homeland Security (DHS) and includes participation from the Federal Communications Commission and the National Security Council. The move comes after

, which identified Bitmain’s hardware as a possible tool for surveillance or interference with the power grid.

The probe is centered on whether Bitmain’s mining equipment, which is widely deployed in American data centers, could be accessed remotely from China to monitor or compromise the U.S. electrical grid. Reports indicate that U.S. authorities have physically examined Bitmain devices seized at entry points, analyzing their chips and software for any hidden threats. The investigation is also looking into possible tariff breaches and whether Bitmain’s connections to the Chinese Communist Party (CCP) represent an unacceptable danger.

released in July pointed out "alarming weaknesses" in Bitmain’s products, emphasizing their frequent installation near sites with high energy usage, such as military installations and power stations.

Bitmain has rejected the accusations of remote control over its devices, describing such assertions as "completely unfounded" and maintaining that it adheres to U.S. regulations. The company also claimed it is "unaware" of the Operation Red Sunset investigation and attributed previous detentions of its products to standard FCC procedures. Nevertheless,

Bitmain’s business to the CCP, cautioning that its machines "can be remotely accessed by Bitmain staff in China" and that their proximity to critical locations "poses an unacceptable risk."

Scrutiny has grown as political tensions escalate. Bitmain’s equipment is now central to a new enterprise supported by Eric and Donald Trump Jr., sons of former President Donald Trump. Their company,

Corp., acquired 16,000 Bitmain units in August for $314 million, using as security. This deal has raised questions about potential conflicts of interest, as the Trump family increases its involvement in cryptocurrency while regulatory policies are being eased. "comprehensive security assessments" on its equipment and insists that, when managed with current security measures, the devices do not present a real threat to U.S. infrastructure.

This investigation highlights broader anxieties regarding China’s role in the cryptocurrency industry. In 2024, President Joe Biden’s administration halted a Bitcoin mining operation near a nuclear missile facility in Wyoming, citing concerns over foreign technology. The Committee on Foreign Investment in the United States (CFIUS) also voiced concerns last year about Bitmain’s proximity to military areas. Additionally, the Commerce Department recently placed Bitmain’s AI subsidiary, Sophgo Technologies, on a blacklist for alleged connections with Huawei.

The DHS has refused to discuss the ongoing investigation, stating it "does not comment on open and active investigations." A senior official from the administration confirmed that authorities are "closely monitoring" potential threats but did not provide updates on Operation Red Sunset. The results of this inquiry could influence future U.S. policy on China’s presence in crypto infrastructure and impact regulations for the trillion-dollar digital asset market.