A major federal investigation in the United States is examining whether Bitcoin-mining machines made by Bitmain Technologies could pose risks to national security. Bitmain, a large manufacturer based in China, supplies most of the world’s Bitcoin-mining devices. These machines run nonstop and use large amounts of electricity, which is why they are often placed near power facilities and other important sites.
According to a Bloomberg report citing anonymous sources, the inquiry—called Operation Red Sunset—has been underway for months and is being led by teams from the Department of Homeland Security. Investigators have been looking into whether Bitmain’s devices could be remotely controlled from China, allowing outsiders to spy on U.S. systems or even interfere with the power grid. They also examined whether the company followed tariff and import tax rules.
A spokesperson for the Department of Homeland Security, Mike Alvarez, declined to comment, stating that the agency does not discuss open or active investigations. This lack of information has drawn even more attention to the case.
The investigation resurfaced in the news because Bitmain agreed to sell 16,000 mining machines to American Bitcoin Corp., a company backed by Eric Trump and Donald Trump Jr. Their involvement has raised questions due to President Donald Trump’s promise to make the United States the “crypto capital of the world.”
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Previous Warnings Add Pressure
Concerns about Bitmain’s equipment have existed in Washington for years. A recent Senate Intelligence Committee report warned that the company’s devices contain “several disturbing vulnerabilities.” The report said these machines “have the capability to be remotely controlled by Bitmain personnel in China” and noted that facilities using the equipment were often located near sensitive areas.
These warnings followed an earlier federal review that found a mining site using Bitmain machines near a U.S. military base posed “significant national security concerns.” Officials feared that foreign-sourced devices operating close to defense locations could create unknown risks.
In May 2024, then-President Joe Biden blocked a Chinese-owned crypto-mining facility that used thousands of Bitcoin miners near a strategic Air Force base in Wyoming. A government committee concluded that the combination of foreign equipment and the location created a “significant national security risk.”
These past events have shaped the growing focus on whether mining machines from overseas could be misused or could unintentionally harm U.S. infrastructure.
Company Responses and Ongoing Debate
The business deal involving the Trump family has led to new conflict-of-interest concerns. Ethics expert Richard Painter said such ties could pose dangers to both the economy and national security. The White House rejected these claims. Press secretary Karoline Leavitt said that the president and his family were not involved in any improper activity.
Bitmain has firmly denied the accusations raised in the investigation. The company said it had no knowledge of Operation Red Sunset and that it is “unequivocally false” to claim its machines can be remotely controlled from China. Bitmain stated that it follows all U.S. laws and does not create products that threaten American safety.
American Bitcoin Corp. also defended the use of Bitmain equipment. Company spokesperson Gautier Lemyze-Young said the firm takes national security and grid stability seriously. He explained that the company performs detailed security testing and has found no signs of remote access.
According to Bloomberg, it remains unclear whether Operation Red Sunset is still active. A senior U.S. official said the government continues to monitor threats of this kind closely, keeping the issue in the national spotlight.
