US officials have arrested four individuals, including a US citizen and two nationals of China, on charges related to the illicit export of Nvidia graphics processing units (GPUs) to China. The alleged scheme involved falsifying paperwork, creating fake contracts, and misleading US authorities in order to send the GPUs to Chinese companies.
The four defendants are Hon Ning Ho, a US citizen born in Hong Kong; Brian Curtis Raymond, a US citizen from Alabama; Cham Li, a PRC national living in California; and Jing Chen, also a PRC national who is an F-1 non-immigrant student in Tampa. The suspects face charges of conspiracy to violate the Export Control Reform Act of 2018, smuggling, and money laundering.
The case involves allegations that Chinese companies paid the conspirators nearly $3.9 million for the illicit exports. According to US officials, the defendants used a front company called Janford Realtor to purchase and export controlled GPUs to China.
Raymond, who was briefly the chief technology officer of Virginia-based Corvex, an AI cloud computing company planning to go public, had no involvement in the scheme according to his company.
However, the case comes amid growing tensions over chip security, with the US House Select Committee on the Chinese Communist Party pushing for legislation that would require exported chips to include "location verification" technology. Nvidia's Chief Security Officer has warned against such requirements, arguing they would be an overreaction and could create vulnerabilities.
The indictment alleges that the conspirators used these tactics in order to disrupt China's plan to build exascale supercomputers for military and surveillance use. The US officials say that these capabilities are being used by China for its military modernization efforts and in connection with the development of advanced AI surveillance tools.
The case highlights the ongoing challenges faced by US authorities in enforcing export controls, particularly in the face of sophisticated cyber espionage operations by Chinese companies.
The four defendants are Hon Ning Ho, a US citizen born in Hong Kong; Brian Curtis Raymond, a US citizen from Alabama; Cham Li, a PRC national living in California; and Jing Chen, also a PRC national who is an F-1 non-immigrant student in Tampa. The suspects face charges of conspiracy to violate the Export Control Reform Act of 2018, smuggling, and money laundering.
The case involves allegations that Chinese companies paid the conspirators nearly $3.9 million for the illicit exports. According to US officials, the defendants used a front company called Janford Realtor to purchase and export controlled GPUs to China.
Raymond, who was briefly the chief technology officer of Virginia-based Corvex, an AI cloud computing company planning to go public, had no involvement in the scheme according to his company.
However, the case comes amid growing tensions over chip security, with the US House Select Committee on the Chinese Communist Party pushing for legislation that would require exported chips to include "location verification" technology. Nvidia's Chief Security Officer has warned against such requirements, arguing they would be an overreaction and could create vulnerabilities.
The indictment alleges that the conspirators used these tactics in order to disrupt China's plan to build exascale supercomputers for military and surveillance use. The US officials say that these capabilities are being used by China for its military modernization efforts and in connection with the development of advanced AI surveillance tools.
The case highlights the ongoing challenges faced by US authorities in enforcing export controls, particularly in the face of sophisticated cyber espionage operations by Chinese companies.