New Report Reveals US Authorities Are Monitoring China-Linked Bitcoin Mining Activities
US officials recently cracked down on a crypto mining facility that was operating near Microsoft powering the Pentagon. The company had been powering the military base for years but it came under scrutiny from investigators who traced back the ties of mining operations to China.
US Authorities to Monitor Chinese Firms
The New York Times reported that Bitcoin data centers based in the USA are traced back to the Chinese government-owned firms. The report raised concerns regarding military bases as the mining operations were present in close proximity with the entity.
At the same time, the revelation from the media outlet extenuated concerns regarding national security. One of these firms is under investigation from the authorities namely a crypto mining operation based on Wyoming that was operating near a data center of Microsoft.
This data center also supported some operational projects for Pentagon. The firm had retained that Microsoft does not have any connection with the malicious activities of the mining operator.
National Security Concerns
The report from investigators has unveiled that there are some national security concerns regarding the computational power processing unit with industrial strength. The main area of concern is the close proximity of the mining farm with Pentagon and the presence of Chinese natives that are working in Microsoft Data Center.
One of the three strategic missile bases are also present in the area that have arose suspicion from US officials citing concerns about threat vectors. The company in question is called Bit Origin and it was a pork processing facility before becoming a crypto data center.
The firm opted for the location on account of a contract with the local utility providers rather than presence of Microsoft facility nearby. The firm moved from Indiana to Wyoming in September and deployed 3200 miners that were generating a hash power of 320 petahashes per second by the end of last month.
The report also talked about the risks associated with establishing connections with the Chinese government or political figures citing the ongoing strain between US and China relations.
Mining operators migrated out of China in 2021 after the government imposed a ban and moved to Texas and Wyoming states. US authorities have cracked down on various mining operators that have linked connected with China.
US Officials Ban Crypto Wallets Associated with Drug Producers
Fentanyl is a lethal drug that has become a major source of concern among US regulators. However, the Treasury Department brought sanctions against cryptocurrency wallets that were tied with producers of fentanyl including Chinese chemical manufacturers.
On the other hand, another finding that cryptocurrency enterprise named Prometheum has ties with Chinese government also prompted investigation approved by 6 members of the Congress. On the other side of the planet, courts in China have ruled that cryptocurrency lending is not a legally binding contract.
The plaintiff in question namely Mr. Ming is set to lose around 80K USDT coins in a case that he filed against the defaulting party Mr. Gang. The term of the loan required repayment of the borrowed funds to be repaid after a 6-month time. The decision was issued by Nanchang People’s court that required Mr. Ming to prove that USDT was a legally issued fiat currency equivalent.
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