• Bitmain, China’s top Bitcoin ASIC manufacturer, is under a U.S. national security investigation.
• The probe, dubbed “Operation Red Sunset,” is led by the U.S. Department of Homeland Security.
• Authorities are examining whether Bitmain’s ASIC machines can be remotely controlled to spy or disrupt U.S. infrastructure.

Bitmain, the dominant Chinese manufacturer of the ASIC machines used to mine Bitcoin (BTC), is reportedly under a U.S. national security probe. Sources cited by Bloomberg say that the Department of Homeland Security is investigating the firm as it tries to determine whether the hardware could be manipulated remotely for purposes related to surveillance or disrupting the U.S. power grid.

Details of the U.S. Investigation

According to the Bloomberg-based report, U.S. officials have launched “Operation Red Sunset” to examine whether Bitmain’s ASIC rigs, widely used by miners. It could be exploited for malicious ends. Investigators are said to be particularly interested in whether remote circuitry or firmware could allow the machines to be controlled from abroad.

In some instances, officials reportedly broke apart Bitmain hardware to search for hidden “backdoor” capabilities. The investigation could have far-reaching implications. Bitmain is estimated to control over 80% of the global Bitcoin ASIC market.

Also Read: Bitcoin Drops Below $86,000 Amid Massive Crypto Market Sell-Off

Bitmain Responds

Bitmain has strongly denied the allegations of remote-control capabilities. According to a company spokesperson who spoke with Bloomberg, the accusation against it of spying or sabotage is “unequivocally false.” The company repeated that it “strictly complies with U.S. and applicable laws.” Bitmain claims it is unaware of any ongoing investigation and underlines that its devices are secure.

Potential Impact on U.S. Miners

This could have a profound effect on the mining sector in the U.S. if Bitmain machines are restricted. Many American mining companies rely on Bitmain Antminers, and supply disruptions could hinder operations. Already, due to increased customs scrutiny, shipments of Bitmain gear to U.S. miners are facing delays, Bloomberg previously reported.

Moreover, the investigation could be a catalyst for U.S. miners to accelerate their shift toward alternative ASIC suppliers or even onshore production. Meanwhile, Bitmain, Canaan, and MicroBT are expanding their manufacturing capabilities in the U.S., partly due to the pressure from regulators and tariffs.

Also Read: Bitcoin Market Update Highlights $88,250 as a Turning Point