Luxor Clarifies Bitcoin Miner Import Blockade in the US

The US Customs and Border Protection (CBP) may have mistakenly seized thousands of ASIC miners, believing them to be illegally imported radio frequency devices. This was reported by Cointelegraph, citing Luxor Technology COO Ethan Vera.

In the autumn of 2024, it emerged that customs were detaining shipments of Antminer S21 and T21 units from Bitmain. By February, the scope of cargo seizures had expanded, and equipment from other Chinese manufacturers, including MicroBT and Canaan, was also affected.

According to journalists, the CBP is acting at the request of the Federal Communications Commission (FCC), with concerns about the ASIC miners arising from the use of AI chips from the Chinese company Sophgo, which is under trade restrictions.

However, Vera believes that the FCC’s decision is based on a misunderstanding of the nature of cryptocurrency mining equipment.

“We believe that the CBP and/or FCC have mistakenly classified bitcoin miners as radio frequency devices, despite clear evidence to the contrary,” the expert noted.

He stated that he had seen the relevant classification of the installations in letters from the CBP.

“Radio frequency equipment refers to devices designed to transmit, receive, or manipulate radio waves. ASICs process electrical signals but do not intentionally generate or transmit radio waves,” Vera emphasized.

He added that industry participants are uncertain about the absence of political motives in the agencies’ actions. Miners also lack clarity on how long the situation will persist.

In early February, US President Donald Trump announced the introduction of 10% tariffs on imports from China. Blockware Solutions’ chief analyst Mitchell Eskew suggested that the implementation of this decision could lead to dynamics similar to those observed in the sector in 2021. At that time, a combination of demand amid a bullish crypto market and supply chain collapses due to COVID-19 led to a tenfold increase in the prices of specialized chips over 12 months.

Vera does not anticipate “significant disruptions” in miner supplies, as a substantial portion of the equipment comes to the US from Southeast Asia, rather than China.

“However, a large-scale trade war could have secondary effects, further encouraging manufacturers to expand local assembly capabilities,” he suggested.

In early March, customs released a “significant portion” of the previously detained equipment. Vera estimates that this pertains to a small number of seized devices.

Back in December 2024, Bitmain announced the launch of a production line in the US. MicroBT also assembles some of its miners within the country.