Investigation Launched into Bitmain's Bitcoin Mining Operations by US Authorities
US officials are looking into potential national security threats posed by Chinese Bitcoin ASIC manufacturer Bitmain over possible remote control capabilities.
US authorities are currently probing the prominent Chinese Bitcoin ASIC producer, Bitmain, for possible national security threats related to its mining devices.
According to a Bloomberg report, an unidentified US official and six anonymous sources disclosed that Bitmain’s mining hardware is central to a federal inquiry known as “Operation Red Sunset.” This investigation, led by the US Department of Homeland Security, aims to explore the possibility of Bitmain’s devices being used for espionage or efforts to disrupt the US power grid.
Previously, authorities had investigated Xiamen Sophgo, a Chinese chip designer linked to Bitmain, concerning its relationship with Chinese telecom giant Huawei, which is under US sanctions.
The scrutiny of Bitmain could have significant implications for the US cryptocurrency mining sector, as Bitmain commands a staggering 80% of the Bitcoin mining ASIC market share. The Chinese firms, including MicroBT, dominate even more, capturing 97% of the market.
