US Bitcoin mining operations are facing significant delays after Customs and Border Protection (CBP) held shipments of Bitmain Antminer devices at multiple ports of entry, Blockspace said. Reported on November 25th.
The detained equipment includes Bitmain's S21 and T21 application-specific integrated circuits (ASICs), which are essential for Bitcoin mining.
Some mining companies have reported waiting up to two months for equipment to arrive, and one company said holding fees for 200 units exceeded $200,000.
CBP is reportedly acting at the request of the Federal Communications Commission (FCC), but the exact reason for the enforcement action remains unclear.
national security concerns
The delay appears to be related to Bitmain's relationship with chip design company Sofgo, which was the subject of an investigation by the U.S. Department of Commerce in October.
The investigation was launched after chips manufactured in Taiwan were allegedly included in Huawei's processors. Huawei has been under U.S. sanctions since 2019 and has been the focus of national security surveillance for years.
While CBP has targeted shipments from Bitmain, ASICs made by other Chinese manufacturers have not faced similar injunctions. Officials from the Advanced Targeting Unit, tasked with identifying high-risk cargo, are reportedly involved in holds at certain ports.
broader impact
The situation highlights the challenges facing U.S. miners, who rely heavily on Chinese-made mining equipment. China supplies most of the chips used around the world in cryptocurrency mining, and Bitmain is the dominant player in the market.
Despite trade restrictions, Bitmain has sought to expand its global footprint by opening offices outside China to avoid tariffs and diversify its business.
The shipping freeze has also reignited debate about China's influence over the crypto sector. Although the Chinese government banned crypto mining in the country in 2021, Chinese-owned companies continue to mine Bitcoin in the United States, further complicating the regulatory situation.
Industry players are demanding clarity from regulators as costs rise and delays mount. Neither CBP nor the FCC have yet made public statements regarding the seized cargo.
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