Crypto Giant Bitmain Faces Scrutiny As US Senator Flags Trump Family Ties

A federal investigation into Chinese hardware maker Bitmain sits unresolved, its outcome unknown to the public. That uncertainty is now drawing fire from Capitol Hill — and putting US President Donald Trump’s family in the middle of it.

Security Probe Stretches Back To Biden White House

Senator Elizabeth Warren wrote to Commerce Secretary Howard Lutnick Thursday, asking for internal documents and communications tied to Bitmain Technologies, the Beijing-based company that makes a dominant share of the world’s bitcoin mining machines.

According to Bloomberg, which first reported the letter, Warren wants to know what the department has done to address what she called “potential national security concerns” — and whether business ties to the Trump family have shaped any of those decisions.

The federal probe Warren is pressing on is reportedly known as “Operation Red Sunset,” though details about the investigation have not been publicly disclosed. Led by the Department of Homeland Security, it examined whether Bitmain’s ASIC mining rigs could be remotely manipulated for espionage or used to knock out parts of the US power grid.

The investigation was launched under the Biden administration and carried into the opening months of Trump’s current term. Based on Bloomberg’s November 2025 reporting, its status remains unresolved.

The security questions around Bitmain did not start with Operation Red Sunset. A Senate Intelligence Committee report from July 2025 concluded that Bitmain hardware “can be forced by the PRC to turn over data” under China’s national security law.

A year earlier, a federal review ordered the divestment of a mining operation near Wyoming’s Francis E. Warren Air Force Base over what officials described as significant national security concerns tied to foreign-made equipment.

Trump Sons Spent $314 Million On The Same Rigs Under Scrutiny

What sharpens the political edge of Warren’s letter is who has been buying Bitmain hardware in bulk. American Bitcoin Corp., co-founded by Eric Trump and Donald Trump Jr. in a joint venture with mining company Hut 8, reportedly signed a contract in August 2025 to acquire 16,000 Bitmain machines for $314 million, paid in pledged bitcoin rather than cash. That deal came from SEC filings cited by Bloomberg.

The company has since grown its fleet considerably. Reports indicate American Bitcoin added another 11,298 machines earlier this month, bringing its total to roughly 89,000 rigs producing about 28.1 exahashes per second of mining power. Its bitcoin treasury has reached around 6,900 BTC — worth approximately $462 million at current prices.

Warren’s letter asks Lutnick directly what steps his department has taken to keep national security decisions clear of influence from firms with Trump family business connections.

Featured image from Quartz, chart from TradingView