The Department of Homeland Security is investigating the Chinese mining giant over potential threats to the power grid and possible espionage activities.
Bitmain, the Chinese powerhouse and world’s leading supplier of Bitcoin mining equipment, has been the subject of a months-long investigation by US authorities. The probe, dubbed “Operation Red Sunset” and conducted by the Department of Homeland Security, examined whether mining devices produced by the Beijing-based company could pose a national security threat to the United States.
According to Bloomberg – citing a US official and six other people familiar with the investigation – authorities assessed whether Bitmain’s machines could be remotely manipulated for espionage purposes or used to compromise the US electrical grid.
Concerns over mining operations controlled by Chinese entities intensified after a New York Times investigation revealed several facilities linked to the Chinese Communist Party operating near critical US infrastructure. These included a site next to a Microsoft data center supporting the Pentagon and another near a nuclear missile base operated by the Air Force in Cheyenne, Wyoming. Many of these locations reportedly used Bitmain hardware.
The issue resurfaced in July, when a report from the Senate Intelligence Committee warned that the company’s devices could be remotely manipulated by China and presented “several concerning vulnerabilities” for the United States.
The investigation included in-depth inspections of chips and firmware from Bitmain devices stopped at US ports. The checks ran in parallel with strategic discussions at the White House National Security Council, launched under the Biden administration and continuing into the early months of the Trump presidency. Investigators also looked into potential violations related to customs duties and import taxes.
Authorities have not disclosed the results of the inquiry, and the current status of the investigation remains unclear. A spokesperson for the Department of Homeland Security told Bloomberg that the agency “does not comment on open and ongoing investigations.”
Bitmain has firmly rejected the accusations, telling Bloomberg that it “strictly complies with US laws and regulations” and has “never engaged in any activity that would pose risks to US national security.” The company called claims that it could remotely control its devices “categorically false.”
The firm also said it was unaware of any investigation called Operation Red Sunset or probes related to tariffs or customs duties. Bitmain attributed past equipment seizures to routine Federal Communications Commission inspections, noting that “nothing unusual was found.” The company also dismissed suggestions of ties to the Chinese government raised in the Senate report.
