rewrite this title US Authorities Are Releasing Seized Bitcoin Mining Hardware: Reuters – Decrypt

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.

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.

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