US officials have spent months examining whether equipment from Bitmain, one of the world’s largest suppliers of bitcoin mining machines, could pose risks to national security, according to a report from Bloomberg. The Beijing-based company dominates the global market for specialized mining hardware, and its presence across major US bitcoin facilities has drawn renewed scrutiny.
Concerns about Chinese-linked mining operations grew last year after a New York Times investigation found several sites with ties to China located close to sensitive US infrastructure. One was positioned beside a Microsoft data center that supports Pentagon operations. Another operated near an Air Force nuclear missile base in Wyoming. Many of these facilities relied on Bitmain equipment.
Bitmain’s name appeared again in July when a Senate Intelligence Committee report warned that its devices could, in theory, be remotely manipulated, calling the vulnerabilities “disturbing.”
Intelligence Authorization Act for Fiscal Year 2025, Division F of the National Defense Authorization Act for Fiscal Year 2025
According to Bloomberg, the company has simultaneously been the subject of a classified Department of Homeland Security inquiry known as Operation Red Sunset. Seven people familiar with the matter told the outlet that investigators examined whether Bitmain hardware could be exploited for surveillance or used to compromise parts of the US power grid. The review reportedly included chip and firmware inspections on machines detained at US ports and ran alongside national security discussions at the White House that began during President Joe Biden’s term and continued into the early months of the Trump administration.
Officials did not disclose the findings, and the current status of the probe remains unknown. DHS declined to comment, citing policies around active investigations.
Bitmain has firmly rejected the allegations. The company told Bloomberg that it follows all US laws, cannot remotely control any of its products, and has never engaged in activity that threatens American security. It also said it had no knowledge of Operation Red Sunset and attributed past equipment detentions to standard FCC procedures. Bitmain denied any connection to the Chinese government and pushed back on Senate claims that its devices create unacceptable risk when used near sensitive facilities.
The investigation has drawn added attention because of the Trump family’s growing involvement in the mining industry. American Bitcoin, a venture linked to Donald Trump’s sons, purchased 16,000 Bitmain machines in August for more than 300 million dollars, according to SEC filings. The company said it conducts detailed security testing and has found no evidence of remote-access vulnerabilities. Trump officials have also dismissed concerns that the family’s business interests could influence federal investigations.
