Subj : DoJ takes down sophisticated network smuggling $160m worth of AI To : All From : TechnologyDaily Date : Tue Dec 09 2025 10:15:07 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 ======================================================================DoJ dismantled a smuggling ring moving $160M worth of Nvidia H100/H200 GPUs to China, arresting two suspects Operation Gatekeeper revealed chips were relabeled SANDKYAN to evade export controls, threatening U.S. AI security Despite the crackdown, President Trump authorized Nvidia to sell its GPUs to China legally 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. Catch the price drop- Get 30% OFF for Enterprise and Business plans The Black Friday campaign offers 30% off for Enterprise and Business plans for a 1- or 2-year subscription. Its valid until December 10th, 2025. Customers must enter the promo code BLACKB2B-30 at checkout to redeem the offer. View Deal 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 Follow TechRadar on Google News and add us as a preferred source to get our expert news, reviews, and opinion in your feeds. Make sure to click the Follow button! And of course you can also follow TechRadar on TikTok for news, reviews, unboxings in video form, and get regular updates from us on WhatsApp too. ====================================================================== Link to news story: https://www.techradar.com/pro/security/doj-takes-down-sophisticated-network-sm uggling-usd160m-worth-of-ai-chips-to-china --- Mystic BBS v1.12 A49 (Linux/64) * Origin: tqwNet Technology News (1337:1/100) .