Chinese nationals, including an illegal extraterrestrial, sent $ 10 million in ia tokens

Two Chinese nationals – one of them an illegal immigrant – were arrested for having pretended to be tens of millions of dollars of sensitive micropuces used in artificial intelligence (AI) to China, the Ministry of Justice announced on Tuesday.

The federal criminal complaint accuses Chuan Geng, 28, of Pasadena, California, and Shiwei Yang, 28, from El Monte, in California, with violation of the law on the reform of export control.

Prosecutors said the criminal offense had a maximum statutory sentence of 20 years in prison. Yang – An illegal immigrant who exceeded his visa – was arrested on Saturday. Geng went to the federal authorities later in the day, the Doj said.

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Pressing the Inscription GPU graphics processor technology. (istock)

They made their first appearance before the Los Angeles American district court on Monday, but no call was taken into account. At that time, a federal magistrate judge ordered Geng – a legal permanent resident – released on bail of $ 250,000.

The judge also planned a detention hearing on August 12 for Yang. Their indictment is scheduled for September 11.

Thanks to their company based in El Monte, Alx Solutions Inc., Geng and Yang would have “knowingly and deliberately” exported from the United States to sensitive technology in China, including graphic processing units (GPU) – specialized computer parts used for modern IT – without first obtaining the license or required authorization from the American trade department, according to the Affidavit filed with the complaint. The activity would have started in October 2022 and continued until July 2025.

According to the complaint, Alx Solutions Inc. was founded shortly after the Ministry of Commerce began to demand licenses for advanced microchips that Yang and Geng have illegally exported.

The Ministry of Justice said that an examination of export files, business files and company websites indicates that a shipment of December 2024 and at least 20 previous expeditions by Alx Solutions involved exports from the United States to shipping and freight transport companies in Singapore and Malaysia – commonly used as transhipment points to hide illegal shipments to China. According to the complaint, Alx Solutions did not receive payment of the entities to which they have exported goods. Instead, according to prosecutors, Alx Solutions has received numerous payments from companies based in Hong Kong and China, including a million dollars from a Chinese company in January 2024.

President Donald attends the “Winning the Race” summit organized by the Podcast All-in and Hill & Valley Forum on July 23, 2025 in Washington, DC (SOMODEVILLA / GETTY Images)

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Prosecutors allege that Alx Solutions sent a shipment in December 2024 which falsely labeled that he sent GPUs subject to federal laws and regulations. The complaint indicates that the shipment in fact contained GPUs which required an export license to China. Neither Geng nor Yang (nor their business) asked or obtained a license from the Ministry of Commerce.

The Ministry of Justice said that the chip had been “manufactured by a high performance AI fleas manufacturer” and is considered the “most powerful GPU chip on the market”. According to the complaint, the chip is “designed specifically for AI applications,” such as “to develop autonomous cars, medical diagnostic systems and other applications powered by AI”.

President Donald Trump displays a decree signed at the “IA victory” summit on July 23, 2025, in Washington, DC (SOMODEVILLA / GETTY Images)

The application of the law searched the office of Alx Solutions last week and seized phones belonging to Geng and Yang. The DoJ said that phones “have revealed incriminating communications between defendants, including communications on the shipment of fleas controlled by export to China by Malaysia to escape American export laws”.

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The Trump administration sounded the alarm in the face of Chinese nationals infiltrating American institutions – including technological companies and American universities – for potential sabotage or to access the value of millions.

Last month, President Donald Trump delivered a speech at the AI top claiming that the United States must “win the world race with China” concerning rapid evolution technology. The President underlined the need to remove obstacles to maintain American leadership in AI and signed three decrees to accelerate federal permits for AI data centers and infrastructure, widen AI exports to allied nations and prohibit AI tools in government which are considered ideologically biased or “awakened”.