WASHINGTON – U.S. authorities have launched a national security investigation into Bitmain, the world’s largest manufacturer of cryptocurrency mining equipment, over concerns that its China-based operations could pose espionage and critical infrastructure risks, according to people familiar with the matter. The probe, reportedly codenamed “Operation Red Sunset,” is said to have been initiated last year and is scrutinizing the potential for the company’s hardware to be used for spying or to destabilize parts of the U.S. power grid.
The investigation reflects growing concerns within the U.S. government about the security of technology supply chains, particularly for hardware originating from China that connects to critical infrastructure. Bitmain’s Application-Specific Integrated Circuit (ASIC) miners are high-powered computers designed for mining cryptocurrencies like Bitcoin. They consume vast amounts of electricity and require internet connectivity to function, making them a potential vector for cyber-attacks, according to national security analysts.
“Any internet-connected device manufactured by a company subject to the influence of an adversarial government is a potential threat,” one former intelligence official noted. “With crypto miners, you have the dual risk of data exfiltration and the capacity to manipulate energy consumption on a mass scale, which could theoretically be weaponized to stress a power grid.”
Adding to the pressure, Senator Elizabeth Warren (D-Mass.), a vocal critic of the cryptocurrency industry’s energy consumption and financial risks, has also reportedly begun making inquiries into Bitmain. Sources indicated her office is examining similar security concerns tied to the concentration of foreign-made hardware in the burgeoning U.S. crypto mining sector.
Neither Bitmain nor Senator Warren’s office immediately responded to requests for comment on the reported investigation. The probe’s existence was first reported by a cryptocurrency-focused news outlet, citing an internal report.
The implications of the investigation could be significant for the U.S. crypto mining industry, which has become the world’s largest following China’s crackdown in 2021. Any resulting sanctions or restrictions on the import and use of Bitmain hardware could disrupt operations for many American mining firms that rely on the company’s products. The probe may also signal a broader U.S. policy shift toward greater regulation and oversight of foreign-made technology operating within the nation’s digital and physical infrastructure.