TL;DR
- Senator Elizabeth Warren has sent a letter to Commerce Secretary Howard Lutnick demanding insight into the department's assessment of Bitmain's hardware
- Warren also requests documentation of any contacts between Bitmain and the Trump family's mining company American Bitcoin, which reportedly purchased 16,000 Bitmain rigs
- The federal investigative project «Operation Red Sunset» is examining whether Chinese mining rigs can be used for espionage or sabotage of the American power grid
- Chinese manufacturers control an estimated over 90 percent of the world market for Bitcoin mining hardware
Warren Pressures Commerce Department on Bitmain Connection
According to Bloomberg, Senator Elizabeth Warren has sent a formal letter to Commerce Secretary Howard Lutnick requesting documentation related to Bitmain — the world's dominant producer of Bitcoin mining hardware. The letter, dated March 2026, focuses on two questions: what security assessments the Commerce Department has made of Bitmain's products, and whether there has been direct communication between Bitmain representatives, the department, and the Trump family's mining venture.
American Bitcoin, a mining company with close ties to the Trump family, reportedly acquired 16,000 Bitmain rigs. Warren believes this creates a potential conflict of interest during a period when the same manufacturer is under federal investigation for possible security threats.
Federal Investigation Underway: «Operation Red Sunset»
The Department of Homeland Security (DHS) is leading a major investigation code-named «Operation Red Sunset,» targeting Bitmain's hardware. The goal is to determine whether Chinese authorities can remotely control these devices to conduct intelligence gathering or disrupt the American power grid. Investigators have reportedly seized Bitmain imports, disassembled machines, and analyzed both chips and software code. The conclusions have not yet been released.
The investigation began under the Biden administration but has continued under Trump.
Military Bases and Power Grids at Risk
The security concerns are not theoretical. In May 2024, President Biden issued an executive order forcing the Chinese-backed mining company MineOne Partners to divest property near Francis E. Warren Air Force Base in Wyoming — a base housing strategic missile systems. The Committee on Foreign Investment in the United States (CFIUS) coordinated the divestment.
A Senate Intelligence Committee report, published in July 2025, stated that Bitmain units had «disturbing vulnerabilities» and posed «an unacceptable risk» near power plants and military installations.
David Feith, a former member of Trump's National Security Council and now affiliated with the Center for a New American Security (CNAS), has stated that Bitmain «is a screaming problem on national security grounds.» He warns that the hardware cannot be secured against potential hostile use, pointing out that a network of Chinese-operated crypto data centers in the US has «unique capabilities to stress and sabotage the power grid.»
Bitmain Rejects Accusations
Bitmain, for its part, categorically denies that the company poses any security risk. In a statement, the company claims it «strictly adheres to US laws and applicable regulations» and has never engaged in activities that threaten US national security. The company states it is unaware of «Operation Red Sunset» and points out that previous customs seizures did not uncover «anything unusual.»
It is not yet known whether the Commerce Department will respond to Warren's letter, or what information, if any, will be made available.
Structural Changes in the Mining Industry
Pressure from Washington has already had consequences for the market. Bitmain announced the start of a production line in the US in December 2025, and the combined tariffs on Chinese-produced mining hardware have reached 57.6 percent. According to Ethan Vera, COO of Luxor Technology, the tariff burden is causing machine flows to be redirected to countries with more favorable import regimes — including Canada.
Guang Yang, CTO of Conflux Network, characterizes the development as a «strategic shift towards politically acceptable hardware sources» — and emphasizes that this is about much more than tariff walls.
Warren's letter adds a new dimension: the question of whether personal conflicts of interest at the top of the Trump administration may have influenced the political handling of a problem that US security authorities have long warned about.
