US Customs Releases Seized Crypto Miners
US Customs Releases Seized Crypto Miners
US Customs and Border Protection (CBP) has reportedly begun releasing thousands of Chinese-made cryptocurrency miners after months of delays at US ports of entry. This follows the seizure of an estimated 10,000 miners.
Taras Kulyk, CEO of Synteq Digital, a crypto mining manufacturer, told Reuters that "thousands of units have been released." However, Ethan Vera, COO of Luxor Technology, stated that released shipments currently represent only a minority of those held.
The Background: Delays and Investigations
Delays began as early as September, primarily affecting Bitmain Antminer ASICs. Blockspace reported in November that the holdup stemmed from a US Department of Commerce investigation involving Bitmain-related chip designer Sophgo. Sophgo was implicated in supplying chips found in a Huawei AI processor, despite denying any business relationship with Huawei.
The CBP reportedly imposed holding fees, with one company reporting charges exceeding $200,000 for 200 ASICs. Interestingly, ASICs from other Chinese manufacturers were not subject to these delays.
The CBP's actions reportedly followed a request from the US Federal Communications Commission (FCC).
Impact on the Crypto Mining Industry
- China's Dominance: China supplies approximately 98% of all chips used in crypto mining.
- Bitmain's Response: Bitmain, the largest manufacturer, expanded its production line into the US to mitigate delivery delays.
- US Mining Presence: The US hosts a significant portion of the Bitcoin network hashrate (nearly 38%) and four major US-based Bitcoin miners.
The release of the miners occurs against the backdrop of past trade tensions, including tariffs on Chinese imports imposed during the Trump administration. Despite these releases, the broader geopolitical landscape and regulatory scrutiny continue to impact the crypto mining industry.
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