Bitmain Technologies Ltd., the Chinese manufacturer behind the majority of the world’s Bitcoin mining machines, has been the focus of a federal investigation assessing whether its products pose national security risks, according to a Bloomberg report.
The investigation, called “Operation Red Sunset,” led by the Department of Homeland Security, reportedly examined whether the company’s machines could be remotely manipulated for espionage or sabotage of critical U.S. infrastructure.
Bitmain denies these capabilities, but researchers reportedly port-tested its equipment and analyzed chips and code to assess potential threats.
The company’s hardware has long come under scrutiny.
A 2017 Bitcoin Magazine The report suggested that the Antminer devices contained code that allowed remote shutdown, which Bitmain said was a theft prevention feature that was later patched. Similar concerns resurfaced in 2019.
In May 2024, then-President Joe Biden blocked a crypto mining facility near a nuclear missile base in Wyoming, citing national security risks related to foreign-origin mining equipment. The Committee on Foreign Investment in the United States (CFIUS) said the presence of foreign mining devices near sensitive facilities could facilitate surveillance and espionage.
Bitmain has repeatedly stated that it complies with US law and has no ties to the Chinese government. He also denied knowledge of “Operation Red Sunset” or any investigation related to imports.
The Commerce Department blacklisted Bitmain’s artificial intelligence subsidiary Sophgo Technologies in January 2025 over alleged dealings with Huawei, raising even more concerns about the company’s ties to Beijing.
Bitmain ties to the Trump family
The investigation intersects with the Trump family’s crypto companies. Eric and Donald Trump Jr. invested in American Bitcoin, a company that recently acquired 16,000 Bitmain devices for $314 million, paid in Bitcoin, for Bloomberg.
The startup plans to operate 76,000 mining machines in the United States and Canada. American Bitcoin insists that its operations follow strict security standards and that Bitmain’s hardware does not pose any credible risk to the US power grid or national security.
The issue has drawn attention from both parties. A July 2025 Senate Intelligence Committee report highlighted “disturbing vulnerabilities” in Bitmain devices and warned that facilities using them near power plants or military installations present “an unacceptable risk.”
Republican Rep. Zach Nunn also asked CFIUS to review specialized chips in foreign mining hardware to assess broader policy implications.
As the United States continues to monitor foreign crypto technology, the case underscores the tension between rapidly expanding digital asset industries and national security concerns, especially when high-profile political figures are involved.
