US Customs has started releasing seized crypto miners: Report
U.S. Customs and Border Protection (CBP) has recently begun releasing thousands of Chinese-made cryptocurrency miners that had been held at various ports of entry for months. This development marks a significant shift for the industry, which faced substantial delays that affected operations and supply chains.
According to Taras Kulyk, the CEO of Synteq Digital, a crypto mining manufacturer, “thousands of units have been released,” highlighting that as many as 10,000 miners were previously seized. This prolonged detention reflects the actions of certain CBP officials who reportedly had reservations about Bitcoin mining, aimed at creating operational challenges within the sector. Ethan Vera, COO of Luxor Technology, also noted that while some shipments are being released, they still represent a small fraction of the total backlog.
The holdup of these miners has roots tied to the U.S. Department of Commerce’s investigation involving Sophgo, a chip designer associated with Bitmain, a major player in the mining hardware space. These delays, which began around September, stemmed from concerns about Sophgo’s alleged connections to Huawei, a company that has faced U.S. sanctions since 2019. One report mentioned excessive holding fees charged by the CBP, amounting to over $200,000 for just 200 application-specific integrated circuits (ASICs).
Interestingly, not all Chinese-manufactured ASICs have been similarly affected; other manufacturers appear to have faced fewer obstacles in bringing their products to the U.S. market. The requests for holding these shipments reportedly originated from the U.S. Federal Communications Commission, suggesting a larger regulatory landscape influencing the cryptocurrency mining industry.
The CBP actions and subsequent delays coincide with the Trump administration’s imposition of a 10% tariff on Chinese imports, a policy that continues to affect various sectors, including blockchain technology. Despite these hurdles, China remains a dominant force in crypto mining, accounting for approximately 98% of chips used in hardware production. Notably, Bitmain is expanding its manufacturing capabilities within the U.S. to fortify against such disruptions in the future.
As it stands, nearly 38% of the Bitcoin network’s hashrate is located in the U.S., housing significant players like MARA Holdings, Core Scientific, CleanSpark, and Riot Platforms. With the release of these miners and potential for enhanced domestic production, the U.S. crypto mining sector may position itself for a recovery and growth trajectory amidst a turbulent regulatory environment.
