National Security Concerns Raised Over Chinese Bitcoin Mining Operation in Wyoming
National security concerns have been raised over a Chinese Bitcoin (BTC) mining operation in Cheyenne, Wyoming, with stakeholders fearing it could pose a significant threat to critical military infrastructure in the United States. US authorities are worried that the operation may provide an opportunity for the Chinese government to engage in “full-spectrum intelligence collection operations,” according to a report by The New York Times.
Microsoft’s Report to the Committee on Foreign Investment
The crypto mining operation came to the attention of US authorities when a team at Microsoft submitted a report to the Committee on Foreign Investment in August 2022. The team expressed concerns that the operation could collect sensitive information from the data center in Cheyenne, which plays a pivotal role in supporting the operational needs of the Pentagon.
“Microsoft has no direct indications of malicious activities by this entity… However, pending further discovery, we suggest the possibility that the computing power of an industrial-level crypto mining operation, along with the presence of an unidentified number of Chinese nationals in direct proximity to Microsoft’s Data Center and one of three strategic-missile bases in the US, provides significant threat vectors.”
Areas of Concern
US officials are also concerned that the Chinese-owned mining plant could be used to intentionally overwhelm electrical grids or engage in cyberattacks. This has raised worries about potential disruption of US military operations. The mine’s location near Francis E. Warren Air Force Base, which houses Intercontinental Ballistic Missiles (ICBMs), has raised eyebrows. The operation is linked to five companies, including Bit Origin Ltd., previously registered as a pork-processing company in the Cayman Islands.
“Even though we are a Microsoft neighbor and a couple of miles from the base, without power, it is nothing — the business cannot succeed,” said Li Jiaming, the president of Bit Origin Ltd.
Recent reports have also identified Chinese malware capable of disrupting power, water, and communication systems to military bases, adding to concerns about national security threats.
China’s Ban on Bitcoin Mining
China’s ban on resource-intensive Bitcoin mining practices in 2021 has led many cryptocurrency businesses to seek refuge in other countries, including the United States.
Hot Take: Potential National Security Threats Loom Over Chinese Bitcoin Mining Operation
National security concerns have been raised over a Chinese Bitcoin mining operation in Wyoming. US authorities fear that the operation may facilitate intelligence collection operations for the Chinese government. The proximity of the mining operation to critical military infrastructure and its potential to disrupt electrical grids and engage in cyberattacks have further intensified these concerns. While the mining company dismisses these worries, recent reports of Chinese malware capable of disrupting military bases’ essential systems have heightened fears about national security threats. As more cryptocurrency businesses seek refuge in other countries due to China’s ban on mining practices, it remains crucial to address and mitigate potential risks associated with foreign-owned operations near sensitive military sites.
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