A Bloomberg report reveals that the U.S. Department of Homeland Security (DHS) is leading an inquiry into Bitmain over potential national security risks. The investigation —known internally as “Operation Red Sunset”— examines whether Bitmain’s mining equipment could be remotely manipulated and whether its deployment has come too close to sensitive military sites. The probe raises new questions about remote-control capabilities, critical infrastructure risks, and the growing relevance of Bitmain in the global Bitcoin mining ecosystem.

A multidimensional investigation into security, control, and market dominance

The inquiry focuses on whether Bitmain’s devices could be remotely accessed and how such a vulnerability might endanger critical infrastructure like the U.S. power grid. Authorities have already seized equipment at ports of entry and are conducting forensic inspections on chips and firmware to search for potential backdoors or control mechanisms that could be exploited.

In parallel, the DHS investigation is reviewing possible violations of tariff and import rules, indicating that regulators are taking a broad, multi-layered approach. Bitmain’s influence in the market compounds the concern: along with MicroBT, the company controls roughly 97% of the global Bitcoin ASIC market, with Bitmain itself accounting for over 80% of that share.

Bitmain has firmly denied all allegations, calling the remote-control claims “absolutely unfounded.” The company also said it has no formal knowledge of an investigation by that name, arguing that previous equipment seizures were routine checks by the Federal Communications Commission.

The probe has already had repercussions for U.S. miners. During February, several publicly listed mining firms faced significant delays in the delivery of ASIC units, slowing expansion plans and increasing operational uncertainty. The situation aligns with Washington’s growing push to scrutinize technologies considered strategically sensitive —a trajectory that echoes earlier actions against Huawei and ZTE.

Technical history also adds fuel to the concern. The well-known “Antbleed” vulnerability once allowed certain Antminer units to be remotely disabled, proving that a centralized kill-switch mechanism existed. Though patched years ago, this precedent remains a core part of today’s risk assessments.

Adding another layer, the investigation has drawn attention for its political and business connections. American Bitcoin —a mining company backed by members of the Trump family— purchased over 16,000 Antminer U3S21EXPH units from Bitmain under strikingly unusual terms, including a promise of future Bitcoin payments redeemable over 24 months. These arrangements have further amplified public and regulatory scrutiny.

Ultimately, the DHS probe represents a collision between national security concerns and the global dependency on Chinese mining hardware. The next key moment will be the conclusions of the forensic analyses on Bitmain’s chips and firmware, which could shape future import restrictions, supply-chain policies, and the operating environment for mining companies across the United States.