By AJ Vicens and Raphael Satter
DETROIT (Reuters) – Recent weeks have seen US authorities initiating the release of seized Chinese-made equipment utilized for cryptocurrency mining, according to revelations from two industry executives shared with Reuters. Cryptocurrency miners, characterized by their souped-up computers featuring advanced chips, engage in competitive endeavors to solve mathematical puzzles. This process aids in the construction of blockchains that underpin the world of cryptocurrency, enabling participants to earn rewards in the form of new digital currency.
Taras Kulyk, the CEO and co-founder of Synteq Digital, a brokerage specializing in cryptocurrency mining equipment, disclosed that “thousands of units have been released.” Kulyk further revealed that, at one instance, up to 10,000 units were held up at various ports of entry. He expressed that “apparently there were some folks in the CBP that really didn’t like bitcoin mining so they wanted to give the entire sector a headache, which they did quite well.”
The seizure of certain bitcoin mining equipment by the U.S. Customs and Border Protection and the Federal Communications Commission commenced late last year, as reported by industry publication Blockspace in November. It was suggested that some machines were detained due to their use of chips from the trade-restricted Chinese chip company Sophgo.
The release of an undisclosed quantity of equipment occurs against the backdrop of the ongoing trade tensions between the U.S. and China, coupled with security apprehensions voiced by U.S. authorities during the closing months of the Biden administration. Ethan Vera, the chief operating officer of Luxor Technology, indicated to Reuters that “some held shipments are being released, but right now that is still a minority of them.” Both Vera and Kulyk raised concerns about the authorities’ worries surrounding radio frequency emissions from the machines, deeming them baseless.
While a spokesperson for the CBP acknowledged Reuters’ request for comment on Wednesday, an immediate response was not provided. The FCC also remained unresponsive to a request for comment.
Sophgo found itself penalized in the final days of the Biden administration for purportedly acting as an intermediary between prominent Taiwanese chipmaker TSMC and the blacklisted Chinese telecom company Huawei, as reported by Reuters in October.
(Editing by Leslie Adler)
