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   DoJ takes down sophisticated network smuggling $160m worth of AI chips to   
   China   
      
   Date:   
   Tue, 09 Dec 2025 10:10:00 +0000   
      
   Description:   
   Chips are still going to China, just not through illegal channels.   
      
   FULL STORY   
      
   The US Department of Justice (DoJ) took down a major smuggling operation that   
   saw Nvidia chips being shipped to China, despite the export ban. Two people   
   were arrested in the process.    
      
   In October 2025, US law enforcement arrested one Alan Hao Hsu, of Missouri,   
   Texas. He confessed using his company, Hao Global LLC, to smuggle Nvidia    
   chips worth at least $160 million, to China. The models being shipped    
   included H100 and H200 Tensor Core GPUs , both used for AI apps and   
   high-performance computing.    
      
   Now, in a continuation of that activity, the DoJ said two people were   
   arrested: Benlin Yuan, a CEO of a Virginia IT services company and a   
   subsidiary of a Chinese tech firm, and Fanyue Gong, an owner of a New York   
   tech firm.    
      
   Nvidia gets the OK   
      
   Together with a Chinese logistics company, and an AI technology firm, the duo   
   worked hard to conceal  the contents of the shipments, and where they were   
   sending the hardware to.    
      
   They would reportedly ship the Nvidia chips to a warehouse in the US, where   
   they would then strip them of all Nvidia labels, and replace them with fake   
   SANDKYAN ones.    
      
   From there, they would try to ship them overseas, but not before obfuscating   
   their true destination. It's not clear how this was done, but the DoJ did   
   explain that Yuan lied to the authorities when asked.    
      
   The AI game seems to be heating up, and the US is doing all it can to prevent   
   China from taking the lead:    
      
   "Operation Gatekeeper has exposed a sophisticated smuggling network that   
   threatens our Nations security by funneling cutting-edge AI technology to   
   those who would use it against American interests," said U.S. Attorney   
   Nicholas J. Ganjei for the Southern District of Texas.    
      
   "These chips are the building blocks of AI superiority and are integral to   
   modern military applications. The country that controls these chips will   
   control AI technology; the country that controls AI technology will control   
   the future. The Southern District of Texas will aggressively prosecute anyone   
   who attempts to compromise Americas technological edge."   
      
   At the same time, US President Donald Trump gave Nvidia the green light to   
   sell its chips to China - legally.    
      
    Via Cybernews    
      
   ======================================================================   
   Link to news story:   
   https://www.techradar.com/pro/security/doj-takes-down-sophisticated-network-sm   
   uggling-usd160m-worth-of-ai-chips-to-china   
      
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