Two Chinese citizens were accused of illegal shipping for China, used in Artificial Intelligence (AI) applications, Department of Justice (DOJ) for millions of dollar sensitive microchips. Tuesday announced,
Chuan Geng and Shivei Yang are accused of “deliberate and willpower”, including chips exporting chips including NVIDIA H100s in China, from October 2022 to July 2025, without obtaining necessary licenses from the Department of Commerce.
According to Doj, Defendants Company, Alx Solutions Inc. It was established in 2022, when soon after the US imposed extensive export ban on advanced computer chips in China, according to DOJ, cited an affidavit filed with criminal complaints.
On more than 20 occasions, according to the DOJ, the company sent banned technology to goods carrying companies in Malaysia and Singapore, which allegedly sent shipment to China.
The California -based company received payment from companies in China and Hong Kong, but never from Malaysian and Singapore companies.
According to the DOJ press release, the defendants have been accused of incorrectly misleading a shipment as “subject to federal laws and rules” in the hope of avoiding inspection.
The chip, the complainant, says, “is the most powerful GPU chip” on the market and “especially designed for AI applications, such as” self-drawing cars, medical diagnosis systems and other AI-operated applications are used to develop “,” said DOJ release.
Defendants were accused of violating the Export Control Reform Act, a hooliganism that is up to 20 years in the federal prison.
Yang, who lives illegally in the US after finishing his visa, was arrested on Saturday. Geng, a legitimate permanent American resident, surrendered to the federal officials later that day.
They appeared late Monday night before a magistrate judge, and Geng was released on a $ 250,000 bond. It was prepared for September on 11 September.
The DOJ stated that the law enforcement discovered its company’s office last week and seized the phones of the defendants, which “detected communication among the defendants, which includes communication-nipped chips to China through Malaysia to avoid US export laws.”
