CBP Releases Seized Chinese Crypto Miners, Easing Industry Concerns

U.S. Customs and Border Protection (CBP) authorities have reportedly begun releasing Chinese-made cryptocurrency mining equipment, following months of being held up at various ports of entry across the United States. This development comes as a relief to the cryptocurrency industry, which has been grappling with supply chain disruptions and potential price increases due to the seizures.

Taras Kulyk, CEO of crypto mining manufacturer firm Synteq Digital, told Reuters that "thousands of units have been released" after as many as 10,000 miners were initially seized. Ethan Vera, chief operating officer of Bitcoin mining infrastructure firm Luxor Technology, also confirmed that some held shipments are being released, although he noted that this is still a minority of the total seizures.

The holdup in the delivery of Bitmain Antminer application-specific integrated circuits (ASICs) dates back to as early as last September, according to Blockspace. The delay is understood to be related to Bitmain-related chip designer Sophgo, which was caught up in a U.S. Department of Commerce investigation in October. Sophgo has denied having any business relationship with Huawei, which has been under U.S. sanctions since 2019.

One company reportedly said the CBP was charging a holding fee for the 200 ASICs it was waiting to receive, with the bill exceeding $200,000. Meanwhile, ASICs from other Chinese manufacturers were not being held by the CBP. The actions by the CBP reportedly came at the request of the U.S. Federal Communications Commission Agency.

The release of the Chinese-made Bitcoin miners comes amidst the Trump administration's imposition of a 10% tariff on Chinese imports. China supplies 98% of all chips used in crypto mining, and its largest manufacturer, Bitmain, recently expanded its production line into the U.S. to better deal with delayed deliveries.

Nearly 38% of the Bitcoin network hashrate is based in the U.S., according to The Chain Bulletin's Bitcoin Mining Map. Four of the largest Bitcoin miners by valuation — MARA Holdings, Core Scientific, CleanSpark, and Riot Platforms — are also based in the U.S. The release of the seized mining equipment is expected to have a positive impact on the cryptocurrency industry, ensuring that the supply chain remains uninterrupted