US authorities monitor China-linked Bitcoin miners amid national security concerns: Report

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    U.S. government officials have reportedly been monitoring certain cryptocurrency mining activities linked to China.

    According to an October 13th report in the New York Times, many Bitcoin (BTC) data centers based in the United States tracked It reports directly to the Chinese government, raising concerns about operations in close proximity to military bases and other areas related to national security. One of the sites authorities reportedly monitored was a mining operation in Wyoming near a Microsoft data center that supported some of the Pentagon’s operations.

    “Microsoft has no direct indication of malicious activity by this organization,” the company said in a report on the operation. “However, pending further discoveries, in addition to the direct proximity of a large number of unidentified Chinese nationals to a Microsoft data center and one of three strategic missile bases in the United States, The United States presents a significant threat vector.”

    Bit Origin, a company that converted the infrastructure of a pork processing facility into a cryptocurrency data center, reportedly chose this location due to an agreement with a local power company rather than its proximity to a Microsoft facility. The company moved its operations from Indiana to Wyoming in September. report It had 3,200 miners deployed and was generating a hash rate of 320 petahashes per second as of September 30th.

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    The report highlights some of the implications of establishing mining operations linked to the Chinese government or certain nationals amid political tensions between the United States and China. Many mining companies fled China in 2021 as the government banned operations, forcing some to relocate to the mainland United States or crypto-friendly jurisdictions such as Texas and Wyoming.

    Many US authorities are targeting individuals and companies with ties to China through cryptocurrencies. On October 3, the Treasury Department sanctioned crypto wallets suspected of being involved in the production of the drug fentanyl, including several China-based chemical manufacturers. In July, six members of Congress called for an investigation into cryptocurrency company Promethium after claims it had ties to the Chinese government.

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