Warren Investigates China’s Bitmain Over US Security Concerns: Report

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Senator Elizabeth Warren has reportedly asked the US Department of Commerce to clarify how it is dealing with potential national security threats related to Chinese cryptocurrency mining giant Bitmain, following earlier reports that the company was under federal scrutiny.

In a letter sent Thursday to Commerce Secretary Howard Lutnick, Warren requested documents and communications related to Bitmain, which produces much of the world’s bitcoin mining equipment, Bloomberg reported on Friday.

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Last November, it was reported that US authorities had launched an investigation into Bitmain due to potential threats to national security. The probe, known as “Operation Red Sunset” and led by the U.S. Department of Homeland Security, was aimed at examining whether Bitmain’s ASIC machines could be remotely accessed for espionage purposes or used to disrupt the U.S. power grid.

According to Bloomberg, the case remains unsolved and its current status is unclear. These types of national security investigations can go on for years without public disclosure or legal action.

Related: MARA sells $1.1 billion worth of Bitcoin to buy back debt at a 9% discount

American analysis of Bitmain deepens

The inspection follows earlier actions including a suspension of shipments of Bitmain devices and a separate investigation into a related Chinese chip company over alleged ties to sanctioned Huawei.

There will also be a federal review in 2024 tiled the utilize of its machines near a US military base as raising “serious national security concerns.”

The mining equipment market share is divided between three huge manufacturers. Source: University of Cambridge

Last July, Bloomberg also reported that Bitmain was preparing to open its first ASIC manufacturing facility in the US, with chip production expected to begin in early 2026 and be at scale by the end of the year.

Cointelegraph reached out to Warren and Bitmain for comment but did not receive a response via publication.

Related: Bitcoin mining difficulty drops 7.7% as miner pressure continues

Trump-backed American Bitcoin buys Bitmain mining rigs

Bitmain machines are widely used in Bitcoin mining operations, including by American Bitcoin Corp., whose investors include Eric Trump and Donald Trump Jr. Last year, the company agreed to acquire 16,000 Bitmain platforms for $314 million.

Warren’s letter also details all communications between Bitmain, the Trump family and trade officials and asks what steps the department has taken to protect national security decisions from political influence.

Warehouse: Bitcoin Could Take 7 Years to Upgrade to a Post-Quantum Version – BIP-360 Contributor

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