The leading Bitcoin mining ASIC manufacturer, Bitmain, based in China, is under US investigation over national security concerns. An investigation known as “Operation Red Sunset” is being led by the US Department of Homeland Security to determine if Bitmain’s ASICs could be used for spying or sabotage on the US power grid.

US authorities previously investigated Bitmain-linked Xiamen Sophgo over a business relationship with US-sanctioned company Huawei in October 2024. This led to the US Customs and Border Protection Agency halting the delivery of thousands of Bitmain ASICs the following month. The hardware was only released in March this year.

Bitmain’s dominance in the Bitcoin mining ASIC market, controlling over 80%, could have far-reaching consequences for the US crypto mining industry. Chinese manufacturers like Bitmain and MicroBT control 97% of the market share, posing a challenge to US companies in the space.

Restrictive measures on Bitmain machines could impact US President Donald Trump’s family, as American Bitcoin, backed by Trump family members, acquired a fleet of Bitmain Antminer ASICs. The company also inherited ASICs from Hut 8, expanding its mining operations significantly.

With Bitmain’s dominance in the crypto mining industry, the findings of this investigation could affect major US-based mining companies. Trade tensions between the US and China have already caused delays in ASIC shipments to US mining companies, highlighting the potential impact of this investigation on the industry.

Read more at Cointelegraph: US Probes Bitmain ASICs for National Security Risks: Report