Bitmain, a Chinese company that makes most of the world’s Bitcoin-mining machines, is under a U.S. federal investigation after its machines were allegedly discovered near a military base.
According to a report, officials are examining whether the equipment could be controlled from China or used to spy on the US. Bitmain also reportedly sold 16,000 machines to a venture backed by two of President Donald Trump’s sons.
Officials say the machines became part of a long-running probe called “Operation Red Sunset,” led by the Department of Homeland Security. The investigation seeks to determine whether the devices could be accessed from China or used for spying or disrupting power systems. Some machines were stopped at U.S. ports, where investigators inspected chips and code for hidden risks, though officials have not disclosed their findings.
Senate report highlights potential risks
A report from the Senate Intelligence Committee later warned that Bitmain’s technology contained “disturbing vulnerabilities” and said the devices “can be remotely controlled by Bitmain personnel in China,” especially when installed near energy-intensive zones that overlap with sensitive military areas.
The report added that Bitmain’s ties to the Chinese Communist Party posed “an unacceptable risk,” though it did not publish technical details to support its warning.
Bitmain strongly denied the claims. In a statement, the company said it is “unequivocally false” that it can remotely control any device and stressed that it “strictly complies with US and applicable laws.” The company said it had “no awareness of or any information at all regarding any alleged federal investigation purported to be called ‘Operation Red Sunset.’”
Bitmain also said that past detentions of its equipment were linked to Federal Communications Commission checks and that “nothing out of the ordinary was found.”
American Bitcoin Corp., the company backed by Trump’s sons, said it takes security very seriously. A spokesman said the machines are “isolated, segmented, monitored and protected under a rigorous security framework.” He also said that when Bitmain’s devices are used with proper industrial security rules, they “do not present a credible risk to the United States power grid or to national security.”
Federal officials say the status of Operation Red Sunset remains unclear, but they continue to monitor foreign-made technology that sits near sensitive US facilities.