U.S. Customs and Border Protection (CBP) has seized thousands of Bitcoin mining machines at ports of entry since September, disrupting the cryptocurrency mining industry. The seizures, carried out at the request of the Federal Communications Commission (FCC), were reportedly based on a misclassification of the machines as radio frequency devices. Industry leaders say the move was a mistake that has caused months of delays and financial strain on mining firms.
Ethan Vera, chief operating officer at Bitcoin mining infrastructure firm Luxor Technology, said the company received official notices from CBP indicating that the mining machines had been detained due to concerns over radio frequency emissions.
“We believe the CBP and/or FCC mistakenly classified Bitcoin mining ASICs as radio frequency devices, despite clear evidence to the contrary,” Vera said.
Bitcoin mining machines process electrical signals but do not intentionally transmit or receive radio waves, which are the primary criteria for radio frequency classification under FCC regulations. Any device that emits radio frequencies must be disclosed via an FCC 740 form, but mining machines do not fall into this category. “They are mistaken,” Vera added.
Economic Fallout and Industry Response
The months-long seizure has placed significant financial burdens on companies waiting for their mining equipment. Taras Kulyk, CEO of crypto mining manufacturer Synteq Digital, told Reuters that as many as 10,000 mining machines were initially detained, and only a fraction has been released so far.
“Thousands of units have been released,” Kulyk said. “Apparently, there were some folks in the CBP that really didn’t like Bitcoin mining, so they wanted to give the entire sector a headache, which they did quite well.”
One company waiting for 200 ASIC miners reported that CBP imposed a holding fee that exceeded $200,000 by November. ASIC mining rigs, particularly those made by Chinese manufacturer Bitmain, represent a significant investment for mining firms, with individual units costing thousands of dollars.
The seizure also comes amid broader U.S.-China trade tensions. The Trump administration has imposed a 10% tariff on Chinese imports, adding another layer of complexity to the supply chain for Bitcoin miners. Industry analysts fear that such tariffs could cause mining hardware prices to spike, similar to what happened in 2021 when supply chain disruptions led to ASIC prices surging more than tenfold within a year.
Gradual Release, Uncertain Future
After months of delays, CBP has begun releasing some of the detained Bitcoin miners. However, Vera said that only a small number of shipments have cleared customs, while the majority remain stuck in limbo. The mining industry has responded by rallying behind lobbyist groups to demand greater transparency from CBP and FCC regulators.
Mitchell Askew, head analyst at Blockware Solutions, warned that if the situation continues, it could disrupt the Bitcoin mining landscape in the U.S.
“Many Bitcoin miners imported into the U.S. come from Southeast Asia, not China,” Vera noted. “However, a broader trade war could have secondary effects, further incentivizing manufacturers to expand onshore assembly capabilities.”
The U.S. now accounts for nearly 38% of global Bitcoin mining activity, and firms such as MARA Holdings, Core Scientific, CleanSpark, and Riot Platforms dominate the domestic industry.
In response to continued import delays, Bitmain, the largest Bitcoin miner manufacturer, has begun expanding production in the U.S. to bypass regulatory bottlenecks. The company has stated that its U.S. expansion is expected to provide a “significant boost” to industry partners and help stabilize supply chains.
Despite the gradual release of detained miners, industry players remain concerned about the potential for future regulatory disruptions. The situation highlights the vulnerability of Bitcoin mining firms to shifting trade policies and bureaucratic missteps. As more shipments trickle through U.S. ports, the industry is left questioning how long it will take before all seized miners are returned and whether similar issues could arise in the future.