US Customs and Border Protection (CBP) just seized the Mining ASICs at U.S. ports under the direction of the FCC.

These ASICs were of great interest to the CBP, as they contain AI chips from Sophgo. 

The enforcement action only targeted Bitmain’s Antmier S21 and T21 models…at first.

Is anyone’s cargo safe anymore?

A Broader Investigation

Customs agents are now snagging rigs from MicroBT and Canaan as well… but why? 

The rigs apparently contain unauthorized AI chips from Sophgo, a company currently facing trade limitations.

Sophgo’s chip appeared integrated in Huawei’s Ascend 910b multi-chip AI system illegally.

This caused the US to add them amongst 25 other Chinese companies to a growing restricted trade list.

Once again, global politics is impacting whether or not you can mine Bitcoin.

One mining outfit reportedly had over $5 million worth of gear seized and swiftly confiscated – that’ll put a damper on any operations hash power. 

The seizure notice dropped on January 10, and they’re not playing around – a single Bitmain S21 PRO 200TH was targeted at SFO airport, referring to it as “unauthorized comms equipment.”

Trump giveth, and Trump taketh away. 

Asian ASIC Giants Are Feeling It

Practically every major Asian ASIC manufacturer is getting caught in this regulatory web. 

Bitmain, who controls 80% of the mining hardware game, is feeling the pressure of this delicate trade war dance.

With Canaan and MicroBT both caught in the crossfire, the potential for even more supply chain chaos is palpable.

The Canaan Avalon Nano 3 has been one of the most popular pieces of hardware for home miners due in part to its efficiency and ability to run a full Bitcoin node.

Miners, especially miners who run industrial-scale operations, might be less impacted, assuming their hardware is grandfathered in.

The Regulatory Space

The US Commerce Department has been actively seeking to control the flow of chips to China, and it’s a big puzzle to navigate. 

Huawei is one company being targeted, as it’s been on the US Entity List since 2019 when it was deemed a national security concern.

Chips manufactured at 14 or 16-nanometer nodes or small are crucial for AI applications, which the new restrictions also encompass. 

Put simply, it’s a mess for tech imports across the board, from Bitcoin miners to AI hardware. 

Meanwhile, in Malaysia…

But it’s not just the US that’s playing whack-a-mole.

Malaysian authorities busted another underground operation that hosted nine mining rigs, fans, and some sketchy power setup that led to a fire – the whole house went up in smoke.

With technology in a state of constant evolution, the situation is becoming increasingly complicated for Malaysian authorities.

Malaysia may not be catching a break any time soon with these crypto-related headaches.

Chip Churns Worldwide

From KL to Kansas, chips are the talk of the town.

Where they come from, what size they are, and how they’ll be used are now intense areas of interest for authorities everywhere.

As if competing for hash rate wasn’t enough, now you’ll have to deal with a cramping wrist from filling out customs paperwork.