U.S. Authorities Probe Bitmain Bitcoin Mining Hardware Over National Security Risks

Bitmain, the Beijing-based company that dominates the global market for Bitcoin mining equipment, has come under scrutiny from United States authorities over potential threats to national security. Reports emerged on November 21, 2025, detailing a previously undisclosed investigation led by the Department of Homeland Security. The inquiry, dubbed Operation Red Sunset, focuses on whether Bitmain's devices could allow remote manipulation from China, potentially enabling espionage or disruptions to the American power grid.

Concerns about Chinese-linked Bitcoin mining operations have grown in recent years, particularly after reports highlighted facilities operating near sensitive sites. A New York Times investigation in 2023 revealed several mines with ties to Chinese entities located close to critical infrastructure, such as a Microsoft data center aiding the Pentagon and an Air Force base in Wyoming hosting nuclear missiles. Many of these operations relied heavily on Bitmain-manufactured machines, raising questions about vulnerabilities in the hardware.

Details of Operation Red Sunset

The Department of Homeland Security initiated the probe to examine chips and firmware in Bitmain equipment intercepted at United States ports. Sources familiar with the matter indicated that the effort ran alongside discussions at the White House National Security Council, starting during the Biden administration and extending into the early Trump term. Investigators also looked into possible violations related to tariffs and import regulations.

Officials involved have not disclosed any specific findings from the inspections. The Department of Homeland Security declined to provide details, stating it does not comment on active investigations. Bitmain responded firmly, asserting full compliance with United States laws and denying any capability for remote control of its devices.

The company described allegations of remote access as false and expressed no awareness of an inquiry called Operation Red Sunset. Past detentions of its equipment at ports were attributed to standard checks by the Federal Communications Commission, with no unusual issues discovered. Bitmain also pushed back against claims of connections to the Chinese government outlined in a Senate Intelligence Committee report from July.

In that report, Bitmain hardware was flagged as presenting vulnerabilities when placed near key American facilities. It suggested the devices could be exploited in ways that compromise security. These warnings built on broader worries about foreign technology in critical sectors, similar to past reviews of other Chinese firms.

The timing of the probe's revelation coincides with increased activity in the United States Bitcoin mining industry. President Donald Trump's sons have expanded their presence through American Bitcoin, a venture partnered with Hut 8. In August, the company acquired 16,000 Bitmain machines valued at $314 million, according to regulatory filings.

American Bitcoin emphasized its commitment to security in statements to media outlets. Representatives noted extensive testing of the hardware revealed no risks of remote access. The firm positions itself as prioritizing grid stability and operational safeguards amid its growth plans.

Trump administration officials have dismissed suggestions that family business interests could affect federal probes. The investigation into Bitmain continues without public resolution, leaving questions about its impact on the mining sector. As Bitcoin mining expands domestically, balancing equipment supply with security considerations remains a key challenge for operators and regulators.

This development highlights ongoing tensions between technological reliance on overseas manufacturers and domestic protection efforts. United States miners depend on efficient hardware to compete globally, yet scrutiny of foreign-sourced gear persists. Any restrictions could influence hardware availability and costs, affecting profitability and miner's bottom line. Bitmain maintains its role as a leading provider, supplying the majority of machines worldwide while navigating these geopolitical hurdles.