U.S. Customs and Border Protection Increases Bitcoin Mining Machine Seizures

The U.S. Customs and Border Protection (CBP) is intensifying the seizure of Bitcoin mining machines at ports, as reported by Blockspace.

Documents from Blockspace indicate that the Federal Communications Commission (FCC) has instructed the CBP to seize MicroBT and Canaan units after a previous order targeting Bitmain products last fall. One document included a notice of seizure worth $5 million.

Will Foxley from Blockspace pointed out that the CBP likely initiated seizures of advanced Bitmain-made Antminer S21 and T21 machines last year due to AI chips from Sophgo, which are now trade-restricted. While the reason for expanding the seizure order to include MicroBT and Canaan products is unclear, it is notable that Canaan is publicly traded in the U.S. and MicroBT has a manufacturing presence there.

Foxley stated, “This escalation is part of the Trump administration’s push to onshore sensitive industries related to silicon,” highlighting that Bitcoin miners require extensive silicon resources.

These seizures may hinder North American firms from increasing their ASIC fleets and could restrict Bitcoin hashrate growth. President Trump has pledged to support U.S. Bitcoin miners, aiming for the domestic mining of the remaining 1.042 million bitcoins.

The seizures align with U.S. laws, specifically 19 USC 1595a(c)(2)(A), permitting the confiscation of unauthorized communications equipment. The FCC and CBP, a division of the Department of Homeland Security, oversee import regulations.

In October 2022, the U.S. implemented rigorous export controls to prevent China from accessing advanced semiconductors to enhance domestic production. President Trump has also indicated plans to impose tariffs of at least 10% on Chinese goods, with some ASIC mining equipment potentially facing tariffs of up to 60%.

Following the first wave of Trump tariffs in 2018, Bitmain relocated manufacturing outside China and now sources around 80% of ASICs. The company has announced intentions to bring some production back to the U.S. due to rising trade restrictions.

Currently, the U.S. holds the largest share of the Bitcoin network hashrate, accounting for 37.8%.