November 24, 2025
By Our Correspondent
U.S. federal authorities have intensified a national security probe into Bitmain Technologies Ltd., a major supplier of Bitcoin mining machines, as Washington sharpens scrutiny of China-linked technology embedded in domestic infrastructure.
The Department of Homeland Security is assessing whether Bitmain’s hardware poses strategic risks to U.S. digital systems, according to people familiar with the matter. The review was triggered after mining computers tied to the Beijing-founded firm appeared near a U.S. military installation, prompting concerns over foreign-made equipment operating close to critical sites.
Investigators are examining whether components originating in China could disrupt the power grid, compromise industrial networks, or enable clandestine data collection at a time of rising geopolitical tensions and heightened awareness of supply-chain vulnerabilities.
The probe — internally known as Operation Red Sunset — is focused on allegations that Bitmain’s devices may contain hidden control features allowing unauthorized access. Federal inspectors have analyzed firmware and chips intercepted at U.S. ports and surveyed machines installed near sensitive infrastructure hubs.
Officials said their concerns were amplified after finding equipment operating in areas tied to defense and government activities. The inquiry also draws on earlier warnings from the Senate Intelligence Committee, which flagged security deficiencies in imported technology used across the energy and data-center sectors.
The investigation expanded following a government review of hardware used by American Bitcoin Corp., a mining firm with links to former President Donald Trump’s sons. Authorities are evaluating whether the widespread use of Chinese-manufactured rigs could open channels for foreign interference in the U.S. electrical grid.
Beyond cybersecurity risks, analysts are studying how imported mining machines interact with local networks and industrial control systems. The findings could have sweeping implications for the cryptocurrency mining sector, which relies heavily on foreign-produced equipment.
Tighter procurement standards and more aggressive supply-chain requirements may be on the horizon, officials said. Agencies are also examining potential tariff violations tied to certain hardware shipments.
Bitmain has rejected claims that its devices contain remote-access functions, saying its products meet modern industrial security standards. Representatives of American Bitcoin Corp., including Gautier Lemyze-Young, said their equipment undergoes extensive security testing and that they remain confident in the hardware.
Still, regulators remain focused on the broader risks associated with China’s dominance in mining-machine manufacturing. Any resulting restrictions could tighten equipment supply and pressure profitability across U.S. mining operations. Industry executives are closely tracking the investigation as federal agencies gather more data and move toward potential policy actions.
