U.S. authorities have recently started releasing Chinese-made cryptocurrency mining equipment that was previously seized, according to industry executives. These miners, powerful computers with specialized chips, play a key role in cryptocurrency networks by solving complex mathematical problems and building blockchains, earning rewards in digital currency.
Taras Kulyk, CEO of Synteq Digital, a cryptocurrency mining equipment broker, confirmed that thousands of seized units are being returned. At one point, up to 10,000 mining units were stuck at various U.S. ports, according to Kulyk. He suggested that some Customs and Border Protection (CBP) officials might have been hostile towards bitcoin mining, creating significant disruption for the sector.
The seizures, which began late last year, involved U.S. Customs and Border Protection (CBP) and the Federal Communications Commission (FCC). Industry publication Blockspace reported that the machines were detained, in part, because they contained chips from Sophgo, a Chinese chip company. This came amidst ongoing tensions between the U.S. and China, with U.S. authorities citing security concerns, particularly regarding radio frequency emissions from the equipment.
Ethan Vera, COO of Luxor Technology, said that although some seized shipments are being returned, most are still being held. Both Kulyk and Vera rejected concerns raised about the emissions from the machines, calling them unfounded.
The release of some of the detained equipment occurs against the backdrop of the U.S.-China trade war, with issues regarding national security and trade restrictions complicating the situation. Sophgo, which faced penalties late in the Biden administration for its alleged links to Chinese telecom giant Huawei, is at the center of the controversy.
