Bitmain Technologies Ltd., the Chinese manufacturer behind most of the world’s Bitcoin mining machines, has been the focus of a federal investigation assessing whether its products pose national security risks, according to Bloomberg reporting.
The investigation, called “Operation Red Sunset,” led by the Department of Homeland Security, reportedly investigated whether the company’s machines could be remotely manipulated for espionage or sabotage of critical U.S. infrastructure.
Bitmain denies these possibilities, but investigators have reportedly tested its equipment in ports and dissected chips and code to assess potential threats.
The company’s hardware has long attracted scrutiny.
A 2017 Bitcoin Magazine The report suggested that Antminer devices contained code that allowed remote shutdown, which Bitmain said was a theft prevention feature that was later fixed. Similar concerns resurfaced in 2019.
In May 2024, then-President Joe Biden blocked a crypto-mining facility near a nuclear missile base in Wyoming, citing national security risks associated with foreign mining. The Committee on Foreign Investment in the United States (CFIUS) said the presence of foreign mining equipment near sensitive facilities could facilitate surveillance and espionage.
Bitmain has repeatedly stated that it complies with US law and has no ties to the Chinese government. It also denied knowledge of “Operation Red Sunset” or any import-related investigations.
The Commerce Department blacklisted Bitmain’s AI affiliate, Sophgo Technologies, in January 2025 over alleged dealings with Huawei, further raising concerns about the company’s ties to Beijing.
Bitmain ties to the Trump family
The investigation intersects with the Trump family’s crypto ventures. Eric and Donald Trump Jr. invested in American Bitcoin, a company that recently acquired 16,000 Bitmain units for $314 million, paid in Bitcoin, per Bloomberg.
The startup plans to operate 76,000 mining machines across the US and Canada. American Bitcoin insists that its operations follow strict security standards and that Bitmain hardware poses no credible risk to the US power grid or national security.
The issue has attracted the attention of two parties. A July 2025 Senate Intelligence Committee report highlighted “disturbing vulnerabilities” in Bitmain devices and warned that facilities using them near power plants or military installations pose “an unacceptable risk.”
GOP Rep. Zach Nunn also requested that CFIUS review specialized chips in foreign mining hardware to assess broader policy implications.
As the United States continues to monitor foreign crypto-technology, the case underscores the tension between fast-growing digital asset industries and national security concerns, especially when high-profile political figures are involved.