Senator Elizabeth Warren Warns of National Security Threat from Foreign-Owned Crypto Miners

U.S. Senator Elizabeth Warren has raised alarms about the potential national security risks posed by foreign-owned cryptocurrency mining operations on American soil. Speaking at a Senate Committee on Banking, Housing, and Urban Affairs hearing on July 25, Warren criticized these operations, emphasizing their environmental impact and security concerns, according to Cointelegraph.

Warren highlighted the Chinese-owned MineOne facility near a strategic missile base in Wyoming, which was ordered removed by President Biden in May. She warned that such foreign crypto miners could be used for espionage, posing risks to U.S. military operations and the energy grid. 

“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,” Warren stated, adding that their connection to the energy grid could lead to targeted blackouts and cyberattacks.

Warren also criticized the ability of foreign entities to purchase mining facilities secretly using cryptocurrency, bypassing traditional banking systems and anti-money laundering rules. She called for legislative action to address these issues.

Despite Warren’s concerns, research has shown that crypto mining can benefit energy grids by balancing load and increasing renewable electricity capacity. However, the Biden administration has intensified its crackdown on the crypto mining industry, citing China as an example.