US Department of Homeland Security Bans DeepSeek From IT Systems

The US Department of Homeland Security (DHS) has ordered the removal of DeepSeek products from federal civilian agency IT systems, according to Cointelegraph. Filed on Monday, the order also covers DeepSeek affiliates and third-party products and services developed using DeepSeek implementations while prohibiting affected agencies from making new purchases.

DHS warned that the use of DeepSeek by government employees and contractors could expose sensitive information to China, potentially revealing details about US citizens and federal programs. The restriction forms part of a broader regulatory crackdown by US authorities on foreign technology and artificial intelligence investments.

Investment Restrictions and Penalties

Concurrently, the US Treasury has proposed new rules to block investments in artificial intelligence projects and certain high-risk semiconductors in foreign countries. The rules are aimed at geopolitical rival China and other adversaries including Russia, Iran, North Korea, and Cuba, implementing the COINS Act from December 2025 and expanding the Outbound Investment Security Program.

The Treasury also announced its first $200,000 penalty this month to Amidi, LLC for failing to report an investment by its Chinese subsidiary into embodied AI and robotics company Shanghai Qiongche Intelligent Technology, also known as Noematrix.

Key facts

• The US Department of Homeland Security ordered the removal of DeepSeek from federal civilian agency IT systems.
• The order covers DeepSeek affiliates, third-party products, and bans new purchases by affected agencies.
• The US Treasury proposed rules to block investments in AI projects and high-risk semiconductors in adversarial foreign countries.
• The Treasury issued a $200,000 penalty to Amidi, LLC for failing to report a subsidiary's investment in Noematrix.