The United States is examining whether mining equipment produced by Chinese manufacturer Bitmain poses a national security risk. The company, one of the world’s largest suppliers of bitcoin miners, has become the subject of a months-long investigation led by the Department of Homeland Security (DHS), Bloomberg reports. Authorities are assessing whether the machines could be exploited for espionage or used to disrupt the country’s energy infrastructure.

Concerns grow after reports of mining sites near critical infrastructure

Security experts raised alarms last year after The New York Times revealed that China-linked mining operations had been established in close proximity to sensitive U.S. facilities. One site was located next to a Microsoft data center working on Pentagon projects, another near an Air Force base in Cheyenne, Wyoming, home to nuclear missiles. Bitmain hardware was operating in several of these facilities.

The company resurfaced again in July in documents from the Senate Intelligence Committee, which warned that Bitmain devices might be remotely accessible from China — a threat described by senators as “serious and troubling vulnerabilities.”

DHS’s quiet probe: Operation Red Sunset

According to Bloomberg sources, DHS has been conducting a confidential review named Operation Red Sunset. Authorities examined chips and firmware from Bitmain machines seized at U.S. ports to determine whether they could jeopardize grid stability or enable surveillance.

The investigation reportedly ran in parallel with internal discussions at the National Security Council under President Joe Biden and continued during the first months of Donald Trump’s administration. Officials also reviewed potential customs violations and import duty issues. However, their findings remain undisclosed. DHS declined to comment, citing active investigative proceedings.

Bitmain rejects allegations

Bitmain strongly denies the accusations. The company told Bloomberg it “strictly complies with U.S. and international laws” and has never engaged in activities that could harm U.S. national security. It described claims of remote access capabilities as “entirely false.”

Bitmain also said it had no knowledge of an operation called Red Sunset, adding that earlier device detentions were related only to routine FCC inspections. The company likewise rejected any ties to the Chinese government.

Political dimension: spotlight on Trump sons’ bitcoin venture

The case is further complicated by the Trump family’s growing involvement in bitcoin mining. American Bitcoin — a company backed by Trump’s sons and mining partner Hut 8 — purchased 16,000 Bitmain devices for $314 million in August, according to filings with the Securities and Exchange Commission.

The firm said it conducted extensive security tests and found no vulnerabilities allowing unauthorized remote access. Trump allies dismiss speculation that family business interests could influence federal investigations.

Investigation continues

The probe comes at a time when global bitcoin infrastructure is becoming more professionalized while also facing heightened regulatory scrutiny. The outcome of the Bitmain investigation could impact geopolitical relations as well as the mining hardware market, where the Chinese company holds a dominant position.

It remains unclear whether U.S. authorities will publish the results. For investors, miners, and industry firms, uncertainty persists — not only regarding technological risks but also the growing tensions between Washington and Beijing, increasingly spilling into the cryptocurrency sector.

Sources:

https://www.nytimes.com/2023/10/13/us/bitcoin-mines-china-united-states.html

https://www.intelligence.senate.gov/2025/07/29/report-to-accompany-s-2342-intelligence-authorization-act-for-fiscal-year-2026/

https://www.bloomberg.com/news/articles/2025-11-21/chinese-manufacturer-bitmain-faces-us-security-review