Federal authorities are investigating whether Chinese-made crypto mining machines could be exploited to compromise US infrastructure.
Key Takeaways
- Homeland Security launched Operation Red Sunset, a secret probe into Bitmain’s mining equipment for espionage and sabotage risks.
- Devices were found operating near sensitive US sites, including military bases and government-linked facilities.
- Bitmain denies all allegations, calling claims of remote-control access “unequivocally false.”
- The outcome of the investigation remains classified, but scrutiny of Chinese crypto infrastructure is intensifying.
What Happened?
The US government is quietly investigating Bitmain Technologies, a Chinese tech giant that supplies most of the world’s Bitcoin mining machines. The probe, code-named Operation Red Sunset, is spearheaded by the Department of Homeland Security and focuses on whether Bitmain’s hardware poses risks to national security, including threats of espionage or sabotage.
A months-long US probe has examined whether Bitmain’s Bitcoin miners pose national security risks. The company says they don’t. https://t.co/JjgGRvWDmg
— Bloomberg (@business) November 21, 2025
Homeland Security’s Covert Operation
Bitmain’s hardware dominates the global crypto mining market, which prompted authorities to scrutinize its reach within US borders. According to reports from Bloomberg and other outlets, Operation Red Sunset included forensic analysis of Bitmain’s chips and firmware. Devices were seized at ports and examined for vulnerabilities that could allow remote manipulation or data surveillance.
Investigators were particularly concerned about mining rigs operating near military bases and government-linked infrastructure, such as a Microsoft data center working with the Pentagon and a missile facility in Cheyenne, Wyoming.
Key actions in the investigation included:
- Inspection of hardware detained at US ports.
- Parallel briefings at the White House National Security Council.
- Concerns raised in a Senate Intelligence Committee report that cited “disturbing vulnerabilities”.
- Inquiries into potential customs or import tax violations.
The probe spanned both the Biden and early Trump administrations, reflecting ongoing bipartisan concern about Chinese tech influence.
Bitmain Responds to Allegations
Bitmain has denied all claims of wrongdoing, stating that it complies with US laws and has no capabilities to remotely access or control its mining devices. The company labeled the espionage accusations “unequivocally false” and said it was unaware of any investigation by the name Operation Red Sunset.
Bitmain also dismissed the Senate report suggesting links to the Chinese Communist Party, adding that any prior hardware detentions were due to routine Federal Communications Commission checks, not national security red flags.
Political Crosscurrents and Corporate Ties
The investigation has drawn renewed political attention due to recent deals involving Trump family ventures. One entity, American Bitcoin, co-founded by Trump’s sons, purchased 16,000 Bitmain machines for $314 million. Despite concerns, the company emphasized it ran thorough security tests and found no vulnerabilities in the devices.
A spokesperson for American Bitcoin said, “We take national security, grid stability and operational security extremely seriously,” noting that the firm’s due diligence process ruled out any threats.
Regulatory Concerns and Future Implications
As the US-China tech rivalry deepens, crypto mining has become another front line. Lawmakers and regulators are increasingly asking whether foreign control over core blockchain infrastructure represents a security risk.
Key concerns now include:
- Supply chain integrity in the crypto hardware market.
- Risks of digital surveillance or sabotage.
- The proximity of foreign mining operations to US military or strategic assets.
- Lack of transparency in manufacturing and ownership structures.
This investigation signals that crypto mining is no longer just an economic issue. It is now firmly viewed through a national security lens.
CoinLaw’s Takeaway
In my experience tracking government actions on digital assets, this kind of probe is rare but extremely telling. The fact that Bitmain’s hardware is even being considered a security risk speaks volumes about how much the crypto industry has matured. This isn’t just about Bitcoin anymore. It’s about infrastructure, sovereignty and control. I found the connection to facilities near military bases especially striking. Whether or not Bitmain is guilty of wrongdoing, the lack of transparency in the hardware supply chain is a red flag. Crypto miners, investors and policymakers should all take this as a wake-up call.
