2023-10-17 17:41:28
© Reuters. Bitcoin miner raises national security concerns in the US
Blockmarket – A cryptocurrency mining operation in Wyoming is in the focus of US national security authorities. The concern is with the company Bit Origin, which uses mining equipment of Chinese origin (ASICs from BitMain). The concerns arise due to the geographic proximity that the company’s base of operations has with two facilities of extreme importance and sensitivity to the national security of the United States.
A worrying Bitcoin mine
The tensions involving Bit Origin’s base of operations are due to the Chinese origin of its equipment, and the consequent threat of espionage that it may pose. But this threat becomes truly worrying due to the location of its base of operations: it is neighboring a Microsoft (NASDAQ:) data center, which provides services to the Pentagon. Furthermore, it is just over a kilometer away from an American Air Force base, which controls missiles armed with nuclear warheads.
Authorities are expressing concerns not only about spying and intelligence gathering, but also about the impact on the site’s electrical infrastructure. The specialized computers used in cryptocurrency mining operate continuously, consuming enormous amounts of energy and placing significant pressure on local electrical grids.
Brian Harrell, former assistant secretary for infrastructure protection at the Department of Homeland Security during the Trump administration, highlights the possibility of targeted cyberattacks and blackouts if these operations work together. It is worth remembering that there is a strong presence of installations in several US states, with the majority using equipment of Chinese origin.
BitMain and the Chinese Communist Party
While there is no apparent direct connection between Bitcoin mining manufacturers and Chinese authorities, import records reveal that Bitmain specifically sent shipments of products to the US through a subsidiary located in a Communist Party location in China. It is worth remembering that since the ban on Bitcoin mining in China in May 2021, Bitmain has significantly increased the export of equipment, claiming to control 90% of the global market for these devices.
In the context of the sharp increase in Bitcoin mining in the US and the associated implications for energy consumption and the possibility of interference in the functioning of electrical grids, authorities and security experts emphasize the need to implement strict monitoring protocols and effective regulation to mitigate the risks in question.
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