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- 1 Pentagon authorities are closely monitoring a Bitcoin operation based in Wyoming, as reported by NYT.
- 2 The U.S. government’s attention was drawn to this after a report was submitted by the Microsoft team to the Committee on Foreign Investment in August 2022.
In a recent report by The New York Times, Pentagon authorities are closely monitoring a Bitcoin operation based in Wyoming, which is strategically positioned near a Microsoft data center and a nearby military base. The Pentagon has raised apprehensions regarding potential national security threats arising from the operation’s ties to China.
Microsoft has conveyed its concern, suggesting that the Bitcoin operation’s location in Wyoming may offer an opening for the Chinese government to conduct extensive intelligence-gathering operations, targeting both the data center and the Francis E. Warren Air Force Base, a crucial hub for Intercontinental Ballistic Missiles (ICBMs).
According to the NYT, the U.S. government’s attention was drawn to the crypto-mining operation following a report submitted by a Microsoft team to the Committee on Foreign Investment in August 2022. This report raised concerns that the mining operation could have the capability to gather information from the data center, which plays a crucial role in supporting the operational requirements of the Pentagon.
Further, it noted that the operating system giant has not uncovered direct evidence of malicious activities by this entity.
However, they advise taking into account the potential threat stemming from the substantial computing power of an industrial-scale crypto mining operation and the presence of an undisclosed number of Chinese individuals in close proximity to Microsoft’s Data Center and one of the United States’ three strategic missile bases.
Further investigation is recommended to gain more clarity on the situation.
In 2021, China imposed a ban on the resource-intensive practice of Bitcoin mining. The New York Times has uncovered Bitcoin mining operations in 12 U.S. states that were under the ownership of Chinese nationals. The outlet reports that while some of these operations had ties to the Chinese government, others did not, and a few proved difficult to trace.
In addition, The Times report noted that the Cheyenne at Wyoming Center was among these mining operations. Remarkably, this mining operation is linked to five different companies. Notably, one of these companies, Bit Origin Ltd., had previously been registered as a pork-processing company in the Cayman Islands.
The media outlet asked some people who have voiced concerns about these mining operations. They might be owing to their substantial electricity consumption and might be used intentionally to overload electrical grids. This resulted in planned blackouts; facilitating other cyberattacks.
Li Jiaming, the president of Bit Origin Ltd., clarified that the choice of the Cheyenne, Wyoming location for the mining operation was not influenced by the presence of the Microsoft data center or the nearby military base. Instead, the decision was made due to the willingness of a local utility company to collaborate with Bit Origin.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
