US customs may have thought Bitcoin miners were radio frequency devices: Luxor

US Customs and Border Protection (CBP) authorities may have mistakenly seized thousands of Bitcoin miners under the impression that they were illegally imported radio frequency devices.

Thousands of Chinese-made Bitcoin (BTC) miners had reportedly been seized at US ports of entry since around September and only began being released again as of a few weeks ago.  

The CBP’s move to seize the Bitcoin miners came at the request of the US Federal Communications Commission Agency, industry players have said.

However, Bitcoin mining firm Luxor Technology’s chief operating officer, Ethan Vera, told Cointelegraph that the FCC’s request was made under the mistaken belief that the Bitcoin miners were radio frequency devices.

“We believe the CBP and/or FCC mistakenly classified Bitcoin mining ASICs as radio frequency devices, despite clear evidence to the contrary.”

Vera said Luxor saw the radio frequency device “call out” in letters it received from the CBP.

Any device shipped into the US that carries a radio frequency must be disclosed via an FCC 740 form. However, Vera said Bitcoin mining machines aren’t designed to send out radio frequency signals.

“Radio Frequency Equipment are devices designed to transmit, receive, or manipulate radio waves. ASICs process electrical signals but do not intentionally generate or transmit radio frequency signals,” said Vera. 

“They are mistaken.”

Cointelegraph reached out to CBP for comment but didn’t receive an immediate response.

The holdup was initially understood to be related to Bitmain-related chip designer Sophgo, which was caught up in a US Department of Commerce investigation in October after chips like the ones it ordered in Taiwan were found in a Huawei AI processor. Huawei has been under US sanctions since 2019.

Industry players aren’t sure what the political motivations behind the seizures were or how long the situation will persist, Vera noted.

He added that some Bitcoin mining firms have rallied behind lobbyist groups to seek a detailed explanation of the events and to determine the best path forward.

Related: Bitcoin miners languish amid crypto market rout — JPMorgan

The release of the Chinese-made Bitcoin miners comes as the Trump administration imposed a 10% tariff on Chinese imports.

Head analyst Mitchell Askew of Bitcoin infrastructure firm Blockware Solutions said the tariffs could drive a similar dynamic to what happened in 2021, where Bitcoin application-specific integrated circuit (ASIC) miner prices soared.

“You had the BTC Bull Market as a positive catalyst for ASIC demand, at the same time as the Covid Supply Chain shock, which was a negative supply catalyst — the combination of the factors resulted in ASIC prices more than 10x’ing within a 12-month period.”

Vera, however, doesn’t anticipate “significant disruptions” to the ASIC supply chain, pointing out that many Bitcoin miners imported into the US come from Southeast Asia, not China.

“However, a broader trade war could have secondary effects, further incentivizing manufacturers to expand onshore assembly capabilities.”

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