US Customs and Border Patrol expands Bitcoin mining machine seizures to MicroBT and Canaan units: Blockspace

The U.S. Customs and Border Protection is ramping up seizures of Bitcoin mining machines at ports of entry, according to a report by mining sector news publication Blockspace. 

According to documents reviewed by Blockspace — including a notice of seizure of $5 million worth of goods — the Federal Communications Commission has requested the CBP to requisition MicroBT and Canaan units in an apparent escalation of an order to seize Bitmain products beginning last fall. 

Blockspace’s Will Foxley noted the agency likely began seizing state-of-the-art Bitmain-made Antminer S21 and T21 machines last year because they contain AI chips from the now trade-restricted chip company, Sophgo, in a video message on X. Though it is yet unclear the exact motivation for expanding the order to include MicroBT and Canaan products, especially given that Canaan is a listed stock in the U.S. and MicroBT has a manufacturing pipeline in the country. 

“Looks like the escalation is partially part of the Trump administration’s movement to onshore a lot of these sensitive industries around silicon,” Foxley said. “All these Bitcoin miners are using massive amounts of silicon, making massive amounts of units and importing them into the United States.”

Foxley went on to say these seizures could prevent North American mining companies from expanding their fleet of ASICs chips and limit Bitcoin hashrate growth. 

President Donald Trump has pledged support for U.S. Bitcoin miners, aiming for full domestic mining of the remaining 1.042 million bitcoin to be mined.

The CBP seizures appear to be justified under U.S. legal code provisions like 19 USC 1595a(c)(2)(A), which allows for the seizure of items functioning as unauthorized communications equipment. The FCC regulates domestic and international communications, while the Customs and Border Protection operates under the Department of Homeland Security in part to oversee U.S. imports.

In October 2022, the U.S. introduced significant export controls to limit China's access to advanced semiconductors to bolster domestic manufacturing. President Donald Trump has also vowed to impose tariffs of at least 10% on goods from China. However, some Chinese imports, potentially including ASIC mining equipment, could face more stringent tariffs of up to 60%.

Bitmain moved its manufacturing capacity outside of China following the first wave of Trump tariffs in 2018. The company accounts for roughly 80% of the ASIC supply. The firm previously announced it would move some of its production lines to the United States in response to escalating trade restrictions.

The U.S. currently accounts for 37.8% of the Bitcoin network hashrate, the largest share by country.