Maxi-blitz by ICE at the crypto data center in Texas: arrests and investigations into ASIC activities

An unprecedented operation has shaken the world of bitcoin mining in the United States.

On Monday, September 29, a massive deployment of federal forces raided the Lonestar Dream data center in Pyote, Texas. Specifically, arresting a dozen people and shining a spotlight on activities related to ASICs and Chinese companies in the sector.

The Incursion: Special Forces and Pressing Questions

According to testimonies gathered on site, the scene quickly turned into a theater of operations: “Helicopters, snipers, armed men,” a source told Blockspace, describing the spectacle of the intervention.

The agents, belonging to various agencies including ICE, FBI, Homeland Security Investigations (HSI), Texas Department of Public Safety (DPS), and US Customs and Border Protection (CBP), asked pressing questions to the operators present, trying to reconstruct roles and responsibilities within the facility.

The main objective of the operation was an ASIC repair center managed by ADW Tech, affiliated with Bitmain, located within the mining site. The agents identified and detained “12 or 13” people who were unable to present updated legal documentation. Among them, many Chinese citizens with expired visas.

The context: Bitmain, Sophgo and the sanctions investigations

The action of the federal authorities was not random. In recent months, the Trump administration has taken a particularly strict approach towards ASIC imports linked to companies associated with Micree Zhan, CEO of Bitmain.

The Pyote raid appears to be part of the investigations initiated by the United States Department of Commerce into Zhan’s companies. These companies are suspected of possible sanctions violations.

In particular, law enforcement was searching for restricted AI chips integrated into ASIC miners produced by Sophgo. This is the semiconductor company that shares Zhan as the CEO.

The investigators’ focus was not so much on the bitcoin mining activity itself, but rather on the presence and use of sensitive technologies potentially in conflict with U.S. regulations.

Lonestar Dream and the Texan Mining Landscape

The Lonestar Dream site, the scene of the raid, was recently sold by the mining pool Poolin at the beginning of 2024. This was shortly after Donald Trump’s reelection as president.

The facility hosts several operators, including the company ADW Tech, as well as the powerful 195 MW mine managed by Genesis Digital Assets. However, the latter was not involved in the operation, confirming that the investigators’ focus was targeted and not directed at the entire local mining sector.

Implications and Future Scenarios

The operation conducted by ICE and other federal agencies represents a strong signal for the cryptocurrency sector. In particular, for companies operating in the field of ASICs and technologies related to artificial intelligence.

The involvement of foreign citizens with irregular documentation adds an additional layer of complexity. Thus intertwining immigration issues with national security themes and compliance with international sanctions.

Texas, now recognized as one of the main hubs for bitcoin mining in the United States, thus finds itself at the center of a game that goes far beyond the simple production of digital assets. Investigations into companies affiliated with Bitmain and the technologies used in data centers could have significant repercussions on the future of the sector, both locally and globally.

The Position of the Trump Administration

The law enforcement action fits perfectly with the hardline approach adopted by the current president Donald Trump towards Chinese technological activities deemed sensitive.

In the past, the administration had already imposed restrictions and controls on imports of hardware related to bitcoin mining. Especially when they involved companies led by prominent figures like Micree Zhan.

This new incursion confirms the White House’s intention to remain vigilant on all matters concerning technological security and compliance with sanctions regulations, even at the cost of impacting rapidly growing sectors such as cryptocurrencies.

Conclusions: a sector under observation

The ICE raid on the Lonestar Dream data center in Pyote marks a turning point in the relationship between federal authorities and bitcoin mining operators in the United States.

The focus now shifts to the ongoing investigations and potential consequences for the companies involved. In a context where bitcoin continues to represent a strategic asset and Texas remains the epicenter of global dynamics between technology, politics, and security.

The coming weeks will be crucial to understand if the Pyote operation will remain an isolated case or will trigger a new season of controls and restrictions in the cryptocurrency and advanced technology sector.

In the meantime, the message sent by the authorities is clear. Namely, that bitcoin mining, especially when intertwined with international interests and technologies, will be subject to increasingly attentive and widespread surveillance.