Chinese company under investigation for potential sanctions violations as a result of the chip it employs.
U.S. Customs has been holding Bitmain Antminer S21 and T21 mining devices for nearly two months, according to a report by Blockspace. This has raised concerns about the technological supply chain between the U.S. and China. According to reports, this administrative halt has impacted seven American mining corporations, although the situation remains uncertain.
The Federal Communications Commission (FCC) requested the measure, which is resulting in substantial financial losses for businesses. Specifically, some companies are already paying over $200,000 per day for storage fees for 200 computers. Bitmain, the global champion in Bitcoin mining hardware production, is the specific target of the holds, which do not appear to affect other manufacturers such as MicroBT or Canaan.
It is conceivable that there is a connection to the investigations into Xiamen Sophgo, a semiconductor manufacturer that is currently under scrutiny for alleged violations of U.S. sanctions. Micree Zhan, the CEO and co-founder of Bitmain, established Sophgo in 2019. The company is responsible for the production of critical components, including the CV1835 processor, which has already garnered regulatory attention.
In the context of escalating technological tensions between the United States and China, this development is taking place. In the background, President-elect Trump’s aspirations to establish the United States as a “global leader” in the mining sector include statements that suggest a substantial national strategy for the industry.
At present, there is no direct evidence that connects the ongoing investigations to the ASIC warrants. Mining companies are anticipating additional developments, while authorities have yet to provide official commentary.
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