Federal agents executed a raid on Monday, September 29, at the Lonestar Dream Bitcoin mining facility located in Pyote, Texas. The focus of the operation appeared to be an ASIC repair center on the premises, which is operated by ADW Tech, an entity associated with Bitmain. This information was confirmed by multiple anonymous sources who spoke with Blockspace.
The operation involved a coordinated effort from several government agencies. According to a source present at the scene who spoke to Blockspace, personnel from Immigration and Customs Enforcement (ICE), the Federal Bureau of Investigation (FBI), Homeland Security Investigations (HSI), the Texas Department of Public Safety (DPS), and U.S. Customs and Border Protection (CBP) were all involved.
The source recounted that the morning began with the appearance of an ICE helicopter surveilling the site. Shortly after, a convoy of black SUVs arrived, signaling the start of the raid.
“There were helicopters, snipers, and armed officers,” the source told Blockspace. “[They were] asking probing questions… about responsibilities and roles within the operation.”
Approximately 12 to 13 individuals, representing about half of the repair center’s staff, were detained by law enforcement officials after failing to provide adequate documentation, according to the source. The source further stated that ICE took custody of all Chinese nationals, many of whom allegedly had expired visas.
The region around Pyote, Texas, has become a significant hub for Bitcoin mining operations. Genesis Digital Assets, for instance, runs a substantial 195 MW Bitcoin mining operation in Pyote. However, this facility was reportedly not the target of the recent raid.
Recently, Poolin divested the 30 MW Lonestar Dream site, which includes the on-site ADW Tech repair service. ADW Tech operates as a Bitmain contractor and a certified Antminer repair shop.
This recent action isn’t the only instance of the government interacting with the Bitcoin mining sector.
In late 2024, U.S. Customs and Border Protection (CBP) initiated a series of detentions and seizures of imported ASIC miners at various ports of entry. In some situations, the CBP held the mining hardware for extended periods, imposing storage fees on the affected businesses without providing clear reasons for the detentions. These delays persisted into 2025, following a change in administration, before the CBP began releasing the detained shipments towards the end of the first quarter and the beginning of the second quarter.
Learn More: CBP Intensifies ASIC Miner Crackdown with Seizures and Import Holds
Reportedly, the CBP was searching for specific restricted AI chips produced by Sophgo, a semiconductor firm linked to Bitmain CEO Micree Zhan, within the ASIC miners’ control boards. The U.S. Department of Commerce is currently investigating Sophgo for potential violations of sanctions.
As of this writing, ICE and ADW Tech have not responded to inquiries from Blockspace. We will provide updates as more information becomes available.