US Customs and Border Protection (CBP) authorities may have mistakenly seized thousands of Bitcoin miners

Thousands of Chinese-made Bitcoin (BTC) miners had reportedly been seized at US ports of entry since around September and only began being released again as of a few weeks ago.

US Customs and Border Protection (CBP) authorities may have mistakenly seized thousands of Bitcoin miners under the impression that they were illegally imported radio frequency devices.

The Bitcoin miners, which were made by China, had reportedly been seized at US ports of entry since around September and only began being released again as of a few weeks ago.

The CBP’s move to seize the Bitcoin miners came at the request of the US Federal Communications Commission Agency, industry players have said.

However, Bitcoin mining firm Luxor Technology’s chief operating officer, Ethan Vera, told Cointelegraph that the FCC’s request was made under the mistaken belief that the Bitcoin miners were radio frequency devices.

Vera said Luxor saw the radio frequency device “call out” in letters it received from the CBP.

Any device shipped into the US that carries a radio frequency must be disclosed via an FCC 740 form. However, Vera said Bitcoin mining machines aren't designed to send out radio frequency signals.

“Radio Frequency Equipment are devices designed to transmit, receive, or manipulate radio waves. ASICs process electrical signals but do not intentionally generate or transmit radio frequency signals,” he explained.

"This appears to be an error on the part of the FCC in advising CBP to detain the devices. The request was made in the context of a broader effort by the FCC to enforce regulations on the importation of radio frequency devices, which are subject to different reporting requirements than other types of technical equipment."

According to Vera, the CBP ultimately released the Bitcoin miners after realizing the mistake.

The holdup was initially understood to be related to Bitmain-related chip designer Sophgo, which was caught up in a US Department of Commerce investigation in October after chips like the ones it ordered in Taiwan were found in a Huawei AI processor. Huawei has been under US sanctions since 2019.

Industry players aren't sure what the political motivations behind the seizures were or how long the situation will persist, Vera noted.

He added that some Bitcoin mining firms have now rallied behind lobbyist groups to try and get a detailed explanation of the events and to determine the best path forward.

The release of the Chinese-made Bitcoin miners comes as the Trump administration imposed a 10% tariff on Chinese imports.

Head analyst Mitchell Askew of Bitcoin infrastructure firm Blockware Solutions said the tariffs could drive a similar dynamic to what happened in 2021, where Bitcoin application-specific integrated circuit (ASIC) miner prices soared.

However, Vera doesn't anticipate "significant disruptions" to the ASIC supply chain, pointing out that many Bitcoin miners imported into the US come from Southeast Asia, not China.

"While the tariffs could lead to price increases for consumers, they are unlikely to have a major impact on the supply chain as a whole," he said. "Many Bitcoin miners are imported into the US from countries other than China, such as Taiwan and Vietnam."

The situation highlights the importance of clear communication and cooperation between government agencies and industry stakeholders in the blockchain and cryptocurrency space.

As the industry continues to grow and evolve, it is crucial for policymakers to stay informed about the latest developments and to make decisions that are in the best interests of the American people and the global economy.

CBP has been contacted for comment.

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