The U.S. Department of Homeland Security maintains an open investigation dubbed “Operation Red Sunset” into Bitmain, the dominant Chinese manufacturer of ASICs used in Bitcoin mining. The probe originated from concerns raised back in late 2023 about possible remote manipulation or sabotage of mining hardware, and by November 2025 it has expanded into a case with implications for critical infrastructure, national security, and the broader mining supply chain. The issue has gained traction because of the potential technical scope of the alleged vulnerabilities and the regulatory consequences that could follow.
National security concerns take center stage
The investigation aims to determine whether Bitmain’s devices could be remotely exploited for espionage or to interfere with sensitive U.S. infrastructure. To answer this, authorities conducted forensic inspections on chips and firmware taken from machines detained at U.S. ports, looking for hidden backdoors, malicious code, or architectural weaknesses.
A July 2024 report from the Senate Intelligence Committee highlighted “concerning vulnerabilities” linked to Bitmain hardware, noting that some mining facilities associated with China had been installed unusually close to high-security locations. These included a Microsoft data center servicing the Pentagon and an Air Force missile base in Cheyenne, Wyoming.
Politically, the case has drawn bipartisan attention at the National Security Council level, with both parties expressing concern. Bitmain, for its part, has strongly denied all allegations, calling claims of remote control “absolutely false” and saying it has no formal knowledge of any investigation by that name.
Concerns have been amplified by Bitmain’s overwhelming dominance in the sector, with reports showing the company controls a majority share of global mining hardware. This concentration raises the stakes for the U.S., as any restrictions or import limitations could disrupt domestic miners. Signs of strain already appeared earlier in 2025, when several publicly listed mining firms reported delays in ASIC shipments—an early preview of how regulatory scrutiny can ripple through the sector.
The political dimension of the case grew after it was revealed that mining ventures backed by members of the Trump family had purchased thousands of Bitmain units. The unusual financing structure of those deals raised questions about potential conflicts of interest, complicating both public perception and the regulatory conversation. Because DHS does not comment on active investigations, there are currently no public findings that clarify liabilities or outline potential actions.
So far, regulatory responses have included stricter customs inspections and deeper national-security risk assessments. Future measures could involve supply-chain audits, new import restrictions, or mandated compliance frameworks—steps that would have direct consequences for U.S. miners, hardware sellers, and hosting facilities.
Ultimately, the Bitmain investigation highlights the broader tension between the mining industry’s dependence on specialized foreign hardware and the national-security priorities of the United States. For now, there are still no definitive public conclusions, leaving miners, policymakers, and markets waiting to see whether the case results in sanctions, new rules, or a shift in supply-chain strategy.