The Department of Homeland Security is reportedly probing Chinese bitcoin mining giant Bitmain over national security concerns, specifically whether its devices could be used as backdoors for espionage or deliberate disruptions to the US electrical grid.
A secretive probe dubbed "Operation Red Sunset" has been underway for months, with agents tearing apart imported machines at ports in search of hidden kill switches or remote-access tricks. The concern is that Bitmain's application-specific integrated circuit (ASIC) mining computers, often deployed in massive data centers near military bases, could be flipped from afar to spy on sensitive areas or trigger chaos in critical infrastructure.
The investigation builds on years of red flags, including a 2024 block on a Bitmain-powered mining site too close to a Wyoming nuclear missile base. The Biden administration has also warned about "disturbing vulnerabilities" in gear that might let Beijing pull strings remotely.
Bitmain, however, insists there's zero way to control its Antminer rigs from China and claims it's never heard of any "Operation Red Sunset." But the probe has raised questions about the company's involvement with the Trump family, whose business ties to Bitmain are increasingly scrutinized.
The Trump family's involvement in crypto, including mining outfits like American Bitcoin, has sparked controversy. Eric and Don Jr. have invested heavily in mining operations, including a $314 million deal for 16,000 Bitmain devices. The probe raises questions about the national security implications of these investments.
Bitmain has already faced controversies over its hardware, including allegations of backdoors during Bitcoin's "block size wars" in 2017. The company was accused of protecting a secret sauce called covert ASICBOOST, which exploited a quirk in Bitcoin's proof-of-work to shave off mining costs.
The investigation comes as concerns about the concentration of power in the cryptocurrency industry grow. Mining centralization remains a serious concern, with ideas like ChainAnchor proposal and transaction filters being debated among users.
As the probe unfolds, it will be interesting to see how deep the national security review of Bitmain goes when the president's kids are powering their operation with hardware from the company.
A secretive probe dubbed "Operation Red Sunset" has been underway for months, with agents tearing apart imported machines at ports in search of hidden kill switches or remote-access tricks. The concern is that Bitmain's application-specific integrated circuit (ASIC) mining computers, often deployed in massive data centers near military bases, could be flipped from afar to spy on sensitive areas or trigger chaos in critical infrastructure.
The investigation builds on years of red flags, including a 2024 block on a Bitmain-powered mining site too close to a Wyoming nuclear missile base. The Biden administration has also warned about "disturbing vulnerabilities" in gear that might let Beijing pull strings remotely.
Bitmain, however, insists there's zero way to control its Antminer rigs from China and claims it's never heard of any "Operation Red Sunset." But the probe has raised questions about the company's involvement with the Trump family, whose business ties to Bitmain are increasingly scrutinized.
The Trump family's involvement in crypto, including mining outfits like American Bitcoin, has sparked controversy. Eric and Don Jr. have invested heavily in mining operations, including a $314 million deal for 16,000 Bitmain devices. The probe raises questions about the national security implications of these investments.
Bitmain has already faced controversies over its hardware, including allegations of backdoors during Bitcoin's "block size wars" in 2017. The company was accused of protecting a secret sauce called covert ASICBOOST, which exploited a quirk in Bitcoin's proof-of-work to shave off mining costs.
The investigation comes as concerns about the concentration of power in the cryptocurrency industry grow. Mining centralization remains a serious concern, with ideas like ChainAnchor proposal and transaction filters being debated among users.
As the probe unfolds, it will be interesting to see how deep the national security review of Bitmain goes when the president's kids are powering their operation with hardware from the company.
I'm not sure why this is a thing but if they're really worried about backdoors and espionage, shouldn't they be looking at the Trump family's investments first? 
I mean, it's not like Bitmain can control their Antminers remotely or something... it's just a mining rig. 
But on the other hand, if there is something shady going on with the company, wouldn't it be good to investigate that too? 
Maybe we'll find out what really happened with the covert ASICBOOST or who knows what else they're hiding. 