TLDR:
- Senator Warren sent a formal letter to Commerce Secretary Lutnick seeking Bitmain-related national security documents.
- Federal probe “Operation Red Sunset” examined whether Bitmain rigs could spy on or sabotage the US power grid.
- American Bitcoin Corp., backed by Eric and Donald Trump Jr., purchased 16,000 Bitmain rigs for $314 million.
- Warren urged Commerce to prevent politically connected crypto firms from influencing national security decisions.
Senator Elizabeth Warren has raised concerns about Bitmain Technologies, a Chinese Bitcoin mining company, amid a federal investigation into potential national security threats.
She sent a formal letter to Commerce Secretary Howard Lutnick requesting documents on the matter. Warren also sought clarity on any communications between Bitmain, the Trump family, and the Commerce Department.
Warren Targets Bitmain Over Federal Security Investigation
The Massachusetts senator’s letter came after Bloomberg News reported a federal probe called “Operation Red Sunset.” The investigation started under the Biden administration and focused on Bitmain’s hardware.
Authorities sought to determine whether the machines could be used for spying. There were also concerns about possible sabotage of the American power grid.
The current status of Operation Red Sunset remains unclear to the public. National security investigations can run for years without any public legal proceedings.
The Department of Homeland Security, which led the probe, did not respond to comment requests. Bitmain also declined to respond to the latest inquiries.
Bitmain previously denied the allegations, calling the reports “seriously inconsistent with the facts and constitute false news.”
The company maintained that it “strictly complies with US and applicable laws and regulations and has never engaged in activities that pose risks to US national security.” Those statements were made in response to the Bloomberg News report last year.
A May 2024 federal review had already flagged concerns about a Bitmain-operated site near a US military base, noting “significant national security concerns.”
A Senate Intelligence Committee report from July also named Bitmain’s devices as presenting “several disturbing vulnerabilities” to the US.
The report stated those devices could potentially be manipulated from China. These findings added weight to Warren’s request for answers.
Trump Family Ties to Bitmain Draw Scrutiny
Among Bitmain’s notable clients is American Bitcoin Corp., a firm connected to the Trump family. Eric Trump and Donald Trump Jr. are both investors in American Bitcoin.
The company signed a contract to acquire 16,000 Bitmain rigs for $314 million last year. That deal drew attention given the ongoing federal interest in Bitmain.
A spokesman for American Bitcoin said the company had conducted extensive security tests on Bitmain’s devices. The tests found no vulnerabilities allowing remote access.
The spokesman stated the company believes that when Bitmain’s devices “are deployed within modern industrial security standards, they do not present a credible risk to the United States power grid or to national security.” American Bitcoin did not respond to the most recent requests for comment.
Warren’s letter asked Commerce to clarify what actions it has taken to prevent conflicts of interest. She specifically asked about steps taken to “insulate the Commerce Department’s national security decisions from the influence of firms that have business ties to the Trump family.”
Commerce holds authority to investigate foreign threats to information and communications technology. However, Democrats remain in the Senate minority and cannot compel a formal response.
Warren made her position clear, writing that “we must ensure that politically connected crypto interests do not receive special treatment and undermine our national security.” The Commerce Department had not responded to comment requests at the time of publication.
