California Duo Charged for Smuggling AI Chips to China

The Division of Justice (DOJ) said in an August 5 press launch that the lads labored collectively to cover the ultimate vacation spot of those superior processors.

Chuan Geng, a resident of Pasadena, and Shiwei Yang, who lives in El Monte, have been named in a federal case filed in Los Angeles.

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Authorities said that the 2 operated by way of their firm, ALX Options Inc., and tried to keep away from US legal guidelines by transport the chips by way of international locations like Singapore and Malaysia earlier than they ended up in China.

Federal officers arrested Geng and Yang on August 2. Geng, who holds everlasting resident standing, turned himself in. Yang, whom the federal government stated remained within the US after his visa expired, was additionally taken into custody that day.

In keeping with the criticism, ALX Options was fashioned after the US authorities began requiring particular approval to export sure superior chips to China.

From October 2022 to July 2025, the corporate is accused of sending over 20 shipments that have been later traced to Chinese language locations. The DOJ famous that many of those shipments first went to corporations based mostly in Singapore or Malaysia.

At a court docket listening to on August 4, Geng was allowed to go away on a $250,000 bond, whereas Yang continues to be being held in custody. The 2 could have a detention listening to earlier than the arraignment, which is scheduled for September 11.

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