Bitmain is named for national security risks! U.S. senators urge the Commerce Department to investigate; Trump’s son holds shares in a company that once purchased 16,000 mining machines.

Democratic Senator Elizabeth Warren sent a letter to U.S. Secretary of Commerce Gina Raimondo, asking how national security concerns regarding Chinese Bitcoin mining manufacturer Bitmain are being addressed. Bloomberg reported that this move directly points to the fact that American Bitcoin, which is partly owned by Trump’s sons, invested $314 million to purchase Bitmain mining machines.
(Background: Bloomberg: U.S. launches investigation into Bitmain! Concerns arise that Bitmain mining machines may be used for espionage activities and threaten the security of the power grid.)
(Additional context: Iranian hackers breach U.S. FBI Director’s email! Nine years of work emails leaked, escalating U.S.-Iran cyber warfare?)

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• “Operation Red Sunset”: Can mining machines be remotely controlled to disrupt the power grid?
• Bitmain and American Bitcoin: We have no issues
• Does the minority party have enough leverage?

Warren specifically stated in her letter: “We must ensure that cryptocurrency stakeholders with political connections do not receive special treatment that could jeopardize national security.” This remark directly targets American Bitcoin Corp., a mining company backed by Eric Trump and Donald Trump Jr., which signed a contract last year to purchase 16,000 mining machines from Bitmain for $314 million.

Warren also requested the Commerce Department to submit documents explaining whether there are potential interactions between Bitmain, Trump’s sons, and the department, and questioned what specific actions the Commerce Department has taken to ensure its national security decisions “are not influenced by companies that have business dealings with the Trump family.”

“Operation Red Sunset”: Can mining machines be remotely controlled to disrupt the power grid?

Bloomberg reported last year that federal authorities have launched an investigation code-named “Operation Red Sunset,” focusing on whether Bitmain’s mining hardware can be remotely controlled for espionage activities, or even disrupt the U.S. power grid.

Sources revealed to Bloomberg that the Department of Homeland Security (DHS) is leading this investigation, but the progress of the case remains unclear. National security investigations can often last for years, during which there may not be any public legal proceedings.

There have been public records supporting external concerns. In May 2024, a federal review report indicated that Bitmain mining machines were used at facilities near a military base, raising significant national security concerns. In July of the same year, a Senate Intelligence Committee report further identified Bitmain, stating that its devices could be remotely controlled by China and contained “multiple disturbing vulnerabilities.”

Bitmain and American Bitcoin: We have no issues

In response to the allegations, Bitmain previously told Bloomberg that the investigation reports are severely inaccurate and constitute fake news, emphasizing that the company “strictly complies with U.S. laws and regulations and has never engaged in any activities harmful to U.S. national security.”

American Bitcoin’s spokesperson also told Bloomberg last year that the company has conducted extensive security testing and found no vulnerabilities allowing remote access. The company’s stance is that as long as Bitmain’s devices are “deployed in environments that meet modern industrial safety standards,” they do not pose a substantive risk to the U.S. power grid or national security.

Does the minority party have enough leverage?

Analysts noted that the Commerce Department has statutory authority to investigate foreign threats to information and communication technology and services, but Warren’s Democratic Party is currently the minority party in the Senate and cannot compel the Commerce Department to respond.

This is where the political tension lies: in a political environment where the Trump family and the mining industry are highly overlapped, who is qualified and willing to safeguard that door of national security? This is not just a matter of whether a Chinese mining manufacturer remains, but also a public interrogation about conflict of interest and political accountability.