Bitmain Technologies, the Chinese manufacturer that makes most of the world’s Bitcoin mining machines, is the focus of a federal investigation assessing whether its products pose a national security risk, Bloomberg reports.
The investigation, dubbed Operation Red Sunset and led by the Department of Homeland Security, reportedly looked into whether the company’s machines could be remotely controlled for purposes of espionage or sabotage of U.S. critical infrastructure.
Bitmain denies such capabilities, but researchers reportedly tested the company’s equipment at the port and dissected its chips and code to assess potential threats.
The company’s hardware has long been in the spotlight.
A 2017 Bitcoin Magazine report suggested that Antminer devices contained code that enabled remote shutdown, and Bitmain said this was an anti-theft feature that was later patched. Similar concerns resurfaced in 2019.
In May 2024, then-President Joe Biden shut down a cryptocurrency mining facility near a nuclear missile base in Wyoming, citing national security risks related to foreign-sourced mining equipment. The Committee on Foreign Investment in the United States (CFIUS) said the presence of foreign mining equipment near sensitive facilities could facilitate surveillance and espionage.
Bitmain has repeatedly said it complies with U.S. laws and has no ties to the Chinese government. He also denied any knowledge of “Operation Red Sunset” or any import-related investigations.
In January 2025, the Department of Commerce blacklisted Bitmain’s AI affiliate company Sofgo Technologies over its alleged dealings with Huawei, further heightening concerns about the company’s relationship with the Chinese government.
Bitmain has ties to the Trump family
The investigation intersects with the Trump family’s cryptocurrency ventures. According to Bloomberg, Eric and Donald Trump Jr. are investors in American Bitcoin, which recently acquired 16,000 Bitmain devices for $314 million, with payments made in Bitcoin.
The startup plans to operate 76,000 mining machines in the US and Canada. American Bitcoin maintains that its operations follow strict security standards and that its Bitmain hardware poses no credible risk to the U.S. power grid or national security.
The issue has received bipartisan attention. A July 2025 Senate Intelligence Committee report highlighted the “alarming vulnerabilities” of Bitmain devices and warned that there was an “unacceptable risk” to facilities using Bitmain devices near power plants and military installations.
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 cryptographic technology, the incident highlights tensions between the rapidly expanding digital asset industry and national security concerns, especially when prominent politicians are involved.
