Bitmain Technologies Ltd., the leading Chinese manufacturer of Bitcoin mining machines, is under investigation by federal authorities regarding potential national security risks associated with its products. This inquiry, known as “Operation Red Sunset,” is being conducted by the Department of Homeland Security and aims to determine whether Bitmain’s machines could be exploited for espionage or the sabotage of critical infrastructure in the United States.
The investigation includes assessments of the capabilities of the company’s mining devices to be remotely manipulated, a notion Bitmain firmly denies. Authorities have reportedly tested the equipment at various ports and have extensively examined the chips and code to identify any possible threats.
Bitmain’s hardware has faced scrutiny over the years. A report in Bitcoin Magazine from 2017 alleged that the company’s Antminer devices included code that allowed for remote shutdowns. This feature was later described by Bitmain as a theft-prevention measure that had been patched. Similar concerns emerged again in 2019, drawing attention to the vulnerabilities of their products.
In May 2024, a decision by then-President Joe Biden to block a cryptocurrency mining facility near a nuclear missile base in Wyoming underscored these concerns. The Committee on Foreign Investment in the United States (CFIUS) cited the potential risks of foreign-sourced mining equipment being proximate to sensitive locations, which could facilitate surveillance and espionage activities.
Despite ongoing investigations, Bitmain has maintained its compliance with U.S. laws, asserting that it has no connections to the Chinese government. The company has also claimed ignorance regarding “Operation Red Sunset” and any related import investigations.
Further complicating matters, the U.S. Commerce Department blacklisted Bitmain’s AI affiliate, Sophgo Technologies, in January 2025 due to alleged ties with Huawei. This development has intensified scrutiny surrounding Bitmain’s affiliations with the Chinese tech landscape.
The investigation also links to crypto ventures by the Trump family. Eric Trump and Donald Trump Jr. invested in a startup called American Bitcoin, which recently purchased 16,000 Bitmain machines for $314 million, paid in Bitcoin. American Bitcoin aims to operate a total of 76,000 mining machines across North America and insists its operations meet stringent security standards, asserting that Bitmain’s hardware does not pose a credible threat to U.S. national security or the power grid.
The bipartisan implications of the inquiry are becoming clearer. A report from the Senate Intelligence Committee in July 2025 raised alarms about “disturbing vulnerabilities” in Bitmain’s devices, indicating that their usage near critical facilities such as power plants or military installations could present an “unacceptable risk.” Additionally, GOP Representative Zach Nunn has urged CFIUS to review the specialized chips found in foreign mining hardware to examine broader policy implications.
As the U.S. government continues to scrutinize foreign crypto technology, this investigation highlights the growing tension between the rapid evolution of digital asset industries and national security concerns, particularly when high-profile political figures are part of the equation.
