U.S. authorities have started releasing thousands of seized Chinese-made crypto mining machines, though most of the equipment remains in custody, Reuters reported Wednesday.
It follows months of seizures at ports nationwide, initiated by the U.S. Customs and Border Protection Agency, citing requests from the Federal Communications Commission to uphold existing regulations.
Decrypt has reached out to the FCC to learn more.
The enforcement actions emerged amid broader concerns about Chinese technology in sensitive sectors, with trade tensions escalating from President Donald Trump’s moves to impose tariffs on China and several other countries.

Thai Authorities Seize 1,000 Bitcoin Miners Following Electricity Theft
Thai police have shut down a Bitcoin mining operation estimated to have stolen roughly $3 million worth of electricity. Officials estimate the operation, located in the Phanat Nikhom district of Chonburi in eastern Thailand, involved upwards of 1,000 machines. According to English-language Thai news outlet The Nation, though authorities weren’t able to provide an exact figure for the theft, it was likely worth “hundreds of millions of baht.” One hundred million baht is worth approximately $2.9 m...
The agencies’ actions align with guidelines from the U.S. Department of Commerce’s Bureau of Industry and Security, which stipulates rules for engaging “advanced semiconductors” typically used in AI and crypto, to “prevent diversion” of such material resources to further Chinese interests.
Blockspace, an industry publication focused on Bitcoin mining and hardware, first reported in November last year that the seizures began by initially targeting models from Bitmain, a privately owned Chinese firm.
By February, the U.S. federal agencies had expanded their seizures to include hardware from manufacturers MicroBT and Canaan.
Some mining machines may have been detained due to containing AI chips from Sophgo, a Chinese company under trade restrictions, Blockspace reported.
Up to 10,000 mining machines had been stranded at various U.S. entry points before the releases began, with some affected retailers claiming their seized equipment were valued at over $5 million.

Blast Exposes Illegal Bitcoin Mining Setup in Malaysia
A blast in Bandar Puncak Alam city, Malaysia, has unearthed an illegal Bitcoin mining operation, uncovering another example of crypto-related power theft in the country. On Tuesday, smoke and flames erupted from a house on Lorong Cekara Purnama, prompting a distress call from a local resident at 11:41 am, local media reported. After the fire was extinguished at 4:45 pm, investigators found a sophisticated illegal setup: nine Bitcoin mining rigs, blower fans, and a D-link router—all connected to...
At the time, the equipment was tagged as “seized and subject to forfeiture” following U.S. legal codes granting authorities discretionary power over such products if they deem it as something subject to restriction or prohibition.
Those seizures have created significant operational challenges for U.S.-based miners who rely on regular equipment upgrades to maintain competitiveness.
The U.S. accounts for 43.8% of the Bitcoin network hashrate, the second-largest share of mining pools by country, compared to China’s 45.8%, according to data from Hashrate Index.
Edited by Sebastian Sinclair