Bitmain Technologies Ltd., a prominent Chinese manufacturer of Bitcoin mining machines, is currently under federal investigation concerning potential national security risks associated with its products, as reported by Bloomberg.

The inquiry, referred to as “Operation Red Sunset,” is being conducted by the Department of Homeland Security and aims to determine whether the company’s machines could be subject to remote manipulation for espionage or the sabotage of critical U.S. infrastructure.

While Bitmain has denied any capabilities that would allow such threats, reports indicate that investigators have conducted tests on its equipment at various ports and have analyzed chips and code for potential vulnerabilities.

In May 2024, former President Joe Biden notably blocked a cryptocurrency mining facility proposal near a Wyoming nuclear missile base, citing national security risks associated with foreign-sourced mining equipment. The Committee on Foreign Investment in the United States (CFIUS) indicated that the presence of foreign mining devices near sensitive infrastructures could pose risks of surveillance and espionage.

Bitmain has consistently asserted its compliance with U.S. law and has stated that it maintains no connection to the Chinese government. The company also claimed to be unaware of “Operation Red Sunset” or any associated import investigations.

In January 2025, the U.S. Commerce Department blacklisted Bitmain’s AI subsidiary, Sophgo Technologies, over alleged collaborations with Huawei, thereby intensifying concerns regarding the company’s affiliations with Beijing.

Bitmain’s Ties with the Trump Family

This investigation also intersects with the cryptocurrency ventures of the Trump family. Eric and Donald Trump Jr. have invested in American Bitcoin, a startup that has recently acquired 16,000 Bitmain devices for $314 million, with the payment made in Bitcoin, according to Bloomberg.

American Bitcoin plans to operate a total of 76,000 mining machines across the U.S. and Canada. The startup asserts that it upholds stringent security standards and claims that Bitmain hardware does not present a credible risk to the U.S. power grid or national security.

The issue has garnered bipartisan attention. A Senate Intelligence Committee report published in July 2025 highlighted “disturbing vulnerabilities” associated with Bitmain devices and warned that facilities utilizing this technology near power plants or military installations pose “an unacceptable risk.”

GOP Representative Zach Nunn has also urged CFIUS to review specialized chips in foreign mining equipment to evaluate broader policy implications.

As the United States intensifies scrutiny of foreign cryptocurrency technology, this case illustrates the growing tension between the rapidly evolving digital asset landscape and national security considerations, particularly when high-profile political figures are involved.

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