Federal Probe Targets Bitmain for Espionage Risks in US Infrastructure

Federal investigators are scrutinizing Bitmain Technologies, a major supplier of Bitcoin mining equipment, under Operation Red Sunset. The investigation, led by the Department of Homeland Security, is assessing potential risks of espionage and sabotage posed by Bitmain's hardware on US critical infrastructure.

Key Points of Investigation

The probe examines whether Bitmain's devices can be remotely controlled from China to conduct surveillance or disrupt the US power grid.
Devices have been seized at US ports for inspection, with focus on their proximity to sensitive sites like military bases.
A Senate Intelligence Committee report highlights vulnerabilities in Bitmain's machines, suggesting possible control from China.

Political and Industry Reactions

The investigation spans both Biden and early Trump administrations, indicating bipartisan concerns over Chinese tech influence.
Bitmain denies any security vulnerabilities, claiming their products prevent remote access or manipulation.
American Bitcoin Corp., supported by Trump’s sons, asserts Bitmain's devices meet industrial security standards.

Regulatory Context

The investigation aligns with broader US reviews of Chinese technology risks in critical sectors.
Authorities are also examining potential tariff violations related to Bitmain's imports.
No public findings have been released; the Department of Homeland Security confirms the investigation is ongoing.
The US-China tariff war could result in over $100 million in liabilities for US miners, prompting Bitmain to plan a US factory.