U.S. authorities have examined whether Bitcoin-mining machines made by China-based Bitmain could be remotely manipulated for espionage or to disrupt the power grid, according to a Bloomberg report published November 21.
The report describes a months-long federal inquiry known as “Operation Red Sunset,” with investigative work led by the Department of Homeland Security and policy discussions at the National Security Council.
Scope of U.S. Federal Review
A prior federal review tied to equipment installed near a U.S. military base flagged “significant national security concerns,” and a July Senate Intelligence Committee document described “several disturbing vulnerabilities,” including potential remote control from China.
Bitmain disputed those characterizations, stating that it is “unequivocally false” that the company can operate machines remotely and asserting its compliance with U.S. law.
People familiar with the matter said that investigators stopped some shipments at U.S. ports, disassembled units, and inspected chips and firmware.
The report also notes parallel reviews of tariff and import issues. The policy track began under President Biden and continued into the early months of the Trump administration. The current status of the inquiry is not described beyond officials declining to comment on active investigations.
The equipment scrutiny is part of a longer record of federal attention. It recounts how a government review last year raised alarms about hardware located near a strategic facility, and it references a Senate panel’s description of risks associated with devices that cluster around high-demand power sites.
Bitmain told Bloomberg that it has “no connection to the Chinese government,” that earlier detentions were linked to Federal Communications Commission concerns, and that “nothing out of the ordinary was found.”
Bitmain and Other Bitcoin Miners
Large mines often concentrate in areas where power is inexpensive, which can bring industrial electronics into close proximity with sensitive infrastructure. If federal agencies issue guidance or enforcement tied to firmware controls, supply chains, or site vetting, hosting providers and miners may face additional compliance steps, stricter vendor warranties, and new cybersecurity requirements.
Public miners and power-hosting firms tend to react to security headlines during U.S. hours, and procurement choices can shift toward vendors that provide stronger attestation on software controls and origin.
For now, the reported public record centers on interviews with current and former officials, the Senate committee’s language on “disturbing vulnerabilities,” and Bitmain’s categorical denial of remote control capability. Further clarity, if forthcoming, would likely arrive through formal agency statements or public legal filings.
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