Warren Warns Foreign-Owned Crypto Miners Could Be US Spies

Sen. Warren criticizes foreign-owned crypto miners, calling them noisy, hot, and a threat to “crash the power grid,” urging stricter regulations.

Senator Elizabeth Warren of the United States, well-known for taking a staunch anti-crypto position, has expressed her worries again. This time, she alerted a Senate committee to the risks associated with foreign-owned bitcoin mining businesses within US borders.

Foreign-owned crypto miners are a national security issue, according to Democratic Senator Elizabeth Warren, who voiced her opinions during a Senate Committee on Banking, Housing, and Urban Affairs hearing on July 25.

According to Warren, foreign businesses constructing cryptocurrency mining operations on US land are a “disaster for the environment” and could endanger national security.

“They’re loud, they’re hot, and they suck up a ton of electricity, which can crash the power grid.”

President Biden issued an order in May to remove the Chinese-owned MineOne complex, which was situated one mile away from a strategic missile site in Wyoming, the target of the outburst.

Warren stated that foreign cryptocurrency mining facilities in the US could be used for espionage in response to Rosen’s question about whether there was a broad concern about them.

“Foreign adversaries are using cryptomines to spy on US military operations. That is an obvious national security risk. But it isn’t the only risk. Foreign-owned cryptomines also threaten the energy grid.”

She continued that the link between our electricity grid and foreign-owned crypto mining operations “may leave the US vulnerable to targeted blackouts and cyberattacks.”

Senator Warren then made a jab at digital assets, saying that foreign companies have been purchasing mining facilities “in secret” and “bypassing our traditional banking system and the Anti-Money Laundering rules” by paying with cryptocurrency.

She continued, saying that this is also how cryptocurrency mining in the US “has been able to secretly send millions of dollars back to China” before declaring that it is “time for us to pass laws.”

As has been widely documented, energy networks can gain from crypto mining by boosting the capacity of renewable energy sources and balancing load.

A research article published in November 2023 found that the fast load response times and intrinsic incorruptibility of crypto mining could improve power grid flexibility.

However, in April, the Biden administration issued a directive to clamp down on the cryptocurrency mining sector, citing China as a model for its continued campaign against the industry.