U.S. authorities have started releasing seized bitcoin mining rigs after months of scrutiny over Chinese-made chips. However, many units remain confiscated due to security concerns.
US Begins Partial Release of Seized Mining Equipment
According to a March 5 Reuters report, thousands of mining rigs have been freed after prolonged scrutiny by U.S. Customs and Border Protection (CBP) and the Federal Communications Commission (FCC). Taras Kulyk, CEO of Synteq Digital, a mining equipment brokerage, confirmed that thousands of units have been released, though up to 10,000 machines had been stuck at various ports at one point.
Ethan Vera, COO of Luxor Technology, added that while some shipments have been released, the majority remain held. The detentions began in late 2024, primarily targeting machines suspected of containing chips from Sophgo, a Chinese semiconductor company facing U.S. trade restrictions.
Regulatory Scrutiny and Security Concerns
Authorities seized mining rigs over concerns about national security and trade violations. Sophgo allegedly acted as a middleman between Taiwanese chipmaker TSMC and Chinese telecom giant Huawei, which is blacklisted under U.S. trade sanctions.
Additionally, some CBP officials reportedly made the seizure process more difficult for miners. Kulyk claimed that some officials “really didn’t like bitcoin mining” and intentionally created obstacles for the industry.
Radio Frequency Concerns and Ongoing Tensions
U.S. regulators also cited radio frequency emissions from the mining machines as another reason for the detentions. However, industry executives dismissed these concerns as unfounded.
Despite the partial release of equipment, the CBP and FCC have not publicly commented on their enforcement actions. The situation highlights ongoing U.S.-China tensions in the technology and semiconductor sectors.
What’s Next for Bitcoin Miners?
While some rigs are being returned, many mining companies remain uncertain about future regulatory actions. Industry leaders are urging for clearer policies on cryptocurrency mining equipment imports.
Mining operators should stay updated on U.S. trade policies and consider alternative supply chains to mitigate future disruptions.
