U.S. authorities have begun releasing a significant number of seized crypto mining machines made by Chinese manufacturers, according to a report from Reuters. This action comes after months of seizures initiated by the U.S. Customs and Border Protection (CBP), which had been requested by the Federal Communications Commission (FCC) to ensure compliance with existing regulations.
The seizures were part of broader concerns regarding Chinese technology in sensitive sectors amid escalating trade tensions stemming from past tariffs imposed by the Trump administration. These enforcement actions align with guidelines from the U.S. Department of Commerce aimed at controlling the importation of advanced semiconductors, which are often utilized in AI and cryptocurrency mining, to prevent any diversion to Chinese interests.
Initially, the focus of these seizures targeted mining hardware from a Chinese company called Bitmain; however, by February, the U.S. federal agencies expanded their scope to include products from manufacturers like MicroBT and Canaan. Reports indicate that some of these mining machines were detained due to the incorporation of AI chips from Sophgo, a Chinese company subject to trade restrictions.
Before the release of some hardware, up to 10,000 mining machines were reportedly stranded at U.S. entry points, costing affected retailers an estimated over $5 million in seized equipment. The legal framework governing these seizures granted authorities the discretion to restrict or prohibit such products based on their classification.
This period of heightened enforcement created substantial operational hurdles for U.S.-based miners, who rely on consistent equipment upgrades to remain competitive. The U.S. currently accounts for approximately 43.8% of the Bitcoin network’s hashrate, making it the second-largest mining pool by country, while China holds around 45.8%.
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