DHS Investigates Bitmain for Hardware Security Risks

The U.S. Department of Homeland Security has launched a federal investigation into Bitmain Technologies Ltd., a leading Chinese manufacturer of Bitcoin mining hardware, over concerns that its equipment could be remotely accessed for cyberespionage or to disrupt the nation's power grid. The probe, known as Operation Red Sunset, has been underway for several months and involves inspections of imported machines at U.S. ports, where authorities have disassembled units to examine their chips and firmware for potential vulnerabilities.

Officials leading the investigation aim to determine if Bitmain's devices, which dominate more than 80 percent of the global Bitcoin mining hardware market, could be manipulated from afar. The inquiry also encompasses reviews of possible tariff and import tax violations by the company. According to individuals familiar with the matter, the effort includes policy discussions at the White House National Security Council that began during the Biden administration and extended into the early months of the Trump administration. A spokesperson for the Department of Homeland Security declined to comment on the active investigation, while a senior...