Bitmain, a Chinese manufacturer that dominates global Bitcoin-mining hardware, is under federal investigation. The company sold 16,000 machines to a venture backed by two of President Donald Trump’s sons.

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Their use near a US military base raised “significant national security concerns,” Bloomberg reported.

Senate Panel Flags Vulnerabilities

Bitmain’s products later appeared in a July report by the Senate Intelligence Committee. The panel warned the machines could be manipulated from China and described “several disturbing vulnerabilities.”

These concerns emerged during a federal investigation known as Operation Red Sunset.

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Officials familiar with the inquiry said the Department of Homeland Security is examining whether the machines could be used for spying or sabotaging the power grid. Sources spoke anonymously because the investigation has not been publicly disclosed.

White House and Port Scrutiny

The DHS inquiry ran alongside policy discussions at the National Security Council, beginning under President Biden and continuing into the early months of the Trump administration.

Federal agencies also detained some Bitmain shipments at US ports. Investigators inspected chips and software for potentially harmful features but did not release findings. Some officials also reviewed possible tariff issues.

Bitmain Denies Allegations

Bitmain denied all allegations. It said claims of remote control were “unequivocally false” and that it “strictly complies with US and applicable laws.” The company said it had no knowledge of Operation Red Sunset and described earlier detentions of its devices as routine FCC matters.

The current status of the investigation is unclear. A senior administration official said the government monitors threats “constantly and vigilantly.” DHS declined to comment.

Broader Implications

The case highlights broader concerns about Bitcoin mining in the US, where Bitmain machines operate widely despite national security questions. It also underscores the Trump family’s involvement in cryptocurrency ventures.

Critics warn their business ties could complicate oversight. A Senate panel noted that Bitmain’s technology and alleged links to the Chinese Communist Party present “an unacceptable risk” when deployed near sensitive sites.

Source: Finance Magnates