US Investigates Whether Bitmain Hardware Could Enable Chinese Remote Access

Investigation Details and Concerns

Chinese Bitcoin mining giant Bitmain has been under U.S. scrutiny for months, with federal officials examining whether its hardware could pose national security risks, according to a Bloomberg report citing one U.S. official and six others familiar with the inquiry. The previously undisclosed investigation, code-named Operation Red Sunset, was led by the Department of Homeland Security. Investigators reportedly sought to determine whether Bitmain’s mining equipment could be remotely manipulated from China to conduct espionage or interfere with the U.S. power grid. Officials examined machine firmware, chips and hardware detained at U.S. ports, while the White House’s National Security Council ran parallel policy discussions beginning under the Biden administration and continuing into the early months of President Donald Trump’s term.

The probe follows growing U.S. concerns over Chinese-owned Bitcoin mines operating near sensitive facilities. A New York Times report revealed in 2023 that mining operations with ties to the Chinese Communist Party were located near critical infrastructure—including a Microsoft data facility supporting Pentagon projects and an Air Force nuclear missile base in Wyoming. Many of these sites used Bitmain machines. A Senate Intelligence Committee report in July said Bitmain’s devices could theoretically be manipulated from China and referenced “disturbing vulnerabilities.” Bitmain has forcefully rejected those claims.

Investor Takeaway

Scope of Operation Red Sunset

Operation Red Sunset focused on whether Bitmain’s hardware included hidden remote-access capabilities or weaknesses that could be exploited to disrupt U.S. energy grids. DHS officials also reportedly reviewed whether any tariff or import-tax violations had occurred. The Department of Homeland Security declined to comment on the status or findings of the investigation. The public record remains thin, and it is unclear whether authorities identified any vulnerabilities, ongoing risks or compliance breaches.

Bitmain denied any knowledge of the investigation, stating it “strictly complies with U.S. and applicable laws” and has “never engaged in activities that pose risks to U.S. national security.” The company called allegations of remote-control capabilities “unequivocally false,” adding that previous detentions of its equipment stemmed from routine Federal Communications Commission checks, not national-security concerns. Bitmain also pushed back on references in the Senate Intelligence Committee report that described its hardware as presenting “an unacceptable risk” when deployed near sensitive installations, rejecting any suggestion of links to the Chinese government.

Rising Political Scrutiny of Mining Hardware

The probe is drawing renewed attention as President Trump’s sons expand their footprint in the Bitcoin mining industry. Their mining venture, American Bitcoin, purchased 16,000 Bitmain machines for approximately 314 million dollars in August, according to SEC filings. The timing has raised questions in Washington about potential conflicts of interest and whether the Trump family’s growing involvement in mining could influence federal enforcement efforts.

Trump administration officials have rejected those concerns, saying business interests have no bearing on national-security investigations. American Bitcoin told Bloomberg that it “takes national security, grid stability and operation security extremely seriously.” The firm said it conducted extensive security tests on the Bitmain hardware and “found no vulnerabilities that would permit remote access.” The intersection of Chinese hardware dominance and rising political involvement in the mining sector adds complexity to how regulators and policymakers approach future oversight. Bitmain remains the world’s largest supplier of Bitcoin mining equipment, giving the company substantial leverage over global mining capacity.

Implications for U.S. Critical Infrastructure and Policy

The U.S. government increasingly treats mining infrastructure as part of a broader national-security framework, especially when operations are located near military, intelligence or energy facilities. Key areas of concern include:

• •
  Grid load and stability: Large-scale mining facilities draw significant power, increasing scrutiny from federal and state regulators.
• •
  Foreign hardware reliance: The U.S. relies heavily on Chinese-made ASICs, raising questions about supply-chain resilience.
• •
  Geographic placement of mines: The proximity of foreign-linked mines to sensitive installations remains under review.
• •
  Potential firmware vulnerabilities: Regulators are examining whether ASIC machines could be exploited remotely.

As the mining industry continues expanding inside the U.S.—driven partly by cheap energy pockets and political interest—the federal government is expected to intensify oversight. Operation Red Sunset suggests that firmware-level risk assessments, import inspections and geopolitical scrutiny could become standard practice. The findings of the investigation, whether released or not, are likely to influence future procurement decisions for miners, utilities and data-center operators. The episode also raises broader questions about how critical-infrastructure policy should evolve in a digital-asset economy where foreign-sourced hardware remains dominant. For now, both DHS and Bitmain remain publicly silent on the outcome. But the investigation’s existence alone signals a turning point: Bitcoin mining hardware is no longer just a commercial product—it is a strategic asset subject to national-security evaluation.