Crypto News: U.S. Launches National Security Probe into Bitmain

The U.S. initiated a national security probe into Bitmain. Allegations of hardware risks, including remote manipulation and espionage, are under investigation.

A prominent Chinese manufacturer is under intense scrutiny. This is a company that sells the majority of the world’s Bitcoin mining machines. This includes 16,000 units sold to a venture financed by two of President Donald Trump’s sons. The firm has been under the focus of a months-long federal investigation. This probe evaluates whether its products pose dangers to US national security.

Bitmain Under Scrutiny for Alleged Hardware Vulnerabilities

Bloomberg publishes a report about Bitmain. This manufacturer of Bitcoin mining machines is under investigation by the US national security. Concerns focus on whether its hardware could be controlled remotely. There are also fears that it could be used to do espionage activities.

The probe was triggered using devices from Bitmain. These were operating near a US military base. This echoed a Senate Intelligence Committee Report. The report raised alarm at “disturbing vulnerabilities.” Bitmain has denied all the allegations. They say their equipment is not remotely accessible. It is without espionage or sabotage threat.

Related Reading: Bitmain Plans First U.S. Crypto Mining Rig Factory Amid Trade Shifts | Live Bitcoin News

The use of machines provided by Beijing-based Bitmain Technologies Ltd. raised fears. A site near a military base raised “significant national security concerns.” This was discovered in a federal review last year. The name of the firm appeared again in July. This was in a report by the Senate Intelligence Committee.

The report alleged that China could tamper with its devices. Moreover, it stated that the machines present “several disturbing vulnerabilities” to the United States. Meanwhile, the Department of Homeland Security spearheads the probe. It now examines whether Bitmain’s hardware faces potential manipulation. This could be for espionage or to sabotage the US power grid.

“Operation Red Sunset” and Broader Geopolitical Context

Key aspects of the investigation are emerging. Alleged Risks are a fundamental focus. Investigators determine whether the Beijing-based company’s machines have “back doors.” Other vulnerabilities could enable remote access from China. This could be to damage infrastructure in the U.S. or to conduct surveillance. Concerns increased from a previous federal review. It found a facility equipped with Bitmain near a strategic missile base in Wyoming. This was a “significant national security risk.”

The code name for the DHS-led inquiry is “Operation Red Sunset.” It has involved Federal agents. They stopped Bitmain machines at US ports. They checked chips and firmware for malicious abilities.

Related Scrutiny is in parallel. This investigation is in line with wider policy debates in the White House. It’s also on par with how Congress is examining Chinese-owned crypto mining operations. In January of 2025, the Commerce Department black-listed Bitmain’s AI affiliate, Sophgo Technologies Ltd. This was over the alleged illegal dealings with a sanctioned tech giant, Huawei.

                                                                Source: Bloomberg

Bitmain’s response to this has been strong. The allegations were strongly denied by Bitmain. They say it is “unequivocally false” that its machines can be controlled remotely from China. The company claims to comply with all laws in the United States. It states that it has no ties to the Chinese government. It goes on with stating no knowledge of “Operation Red Sunset.”

The probe has attracted some other attention. This is because of the involvement of President Donald Trump’s sons. They are involved with the mining of Bitcoin. Their venture, American Bitcoin, bought a lot of Bitmain machines. A spokesman for American Bitcoin said the company takes national security seriously. They did not find any vulnerabilities in the system despite extensive hardware testing.

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