Big Blow to the Major Figure in the Bitcoin World: Will it be Blacklisted by the US? - Coin Bulletin

The US is planning to blacklist the China-based company Sophgo. It is alleged that Sophgo illegally used a chip produced by TSMC in Huawei's AI processor. However, this situation draws attention due to its connections with the Bitcoin mining giant Bitmain.

Sophgo is known as a manufacturer of Bitcoin mining equipment, which is a subsidiary of Bitmain. Among the founders of the company is Micree Zhan, who is also a co-founder of Bitmain. It is stated that Zhan indirectly owns 23% of the shares of Xiamen Sophgo Technologies Ltd., the parent company of Sophgo.

It is planned to subject Sophgo to the trade restrictions known as the 'Entity List' of the USA. Companies included in this list are required to obtain a license for exports of goods and technology from the USA, and it is known that such license requests are usually denied.

Bitmain, in a statement on its social media account, stated that it is not involved in the supply chain investigation and has no connection to it. However, it was revealed that Sophgo communicated with the US Federal Communications Commission (FCC) through an email address belonging to Bitmain in 2023.

Sophgo's role in Bitcoin and artificial intelligence

Sophgo provides artificial intelligence tools for government institutions and universities in China. The company's AI chips are used particularly to enhance surveillance technologies in police stations. However, Sophgo's connections with Bitmain are increasing the company's potential impact in the Bitcoin mining sector.

Bitmain is the world's largest manufacturer of cryptocurrency mining devices under the brand name "Antminer" and serves customers in more than 100 countries. In this context, the relationship between Sophgo and Bitmain is critical in terms of international sanctions against the Bitcoin mining industry.