U.S. Authorities Shut Down Major China-Linked AI Tech Smuggling Network
2 days ago
- #export-control
- #national-security
- #AI-technology
- Two businessmen are in custody for allegedly violating U.S. export control and smuggling laws.
- A Houston company and its owner pleaded guilty to smuggling AI technology out of the U.S., with over $50 million in Nvidia technologies and cash seized.
- Assistant Attorney General John A. Eisenberg emphasized the importance of protecting U.S. technological innovation and enforcing export-control laws.
- U.S. Attorney Nicholas J. Ganjei highlighted the threat of smuggling networks funneling AI technology to adversaries, compromising national security.
- FBI Assistant Director Roman Rozhavsky stressed the importance of interagency cooperation to protect U.S. technology and investigate violations.
- Alan Hao Hsu and his company, Hao Global LLC, pleaded guilty to smuggling and unlawful export activities, involving $160 million worth of Nvidia GPUs.
- Hsu falsified shipping paperwork and received over $50 million from China to fund the scheme, shipping GPUs to China and Hong Kong illegally.
- Benlin Yuan and Fanyue Gong were charged in relation to the scheme, with Yuan conspiring to violate export laws and Gong conspiring to smuggle goods.
- Gong and Yuan allegedly worked with a Hong Kong logistics company and a China-based AI firm to circumvent U.S. export controls.
- If convicted, Yuan faces up to 20 years in prison, and Gong faces up to 10 years.
- The case is being investigated by multiple agencies, including the Commerce Department’s BIS Office of Export Enforcement and FBI field offices.