AI Smuggling Ring Dismantled, Exports to China Halted
Update: 2025-12-09
Description
Federal prosecutors have dismantled a network accused of illegally exporting advanced AI technology to China and other restricted locations. The operation involved a smuggling ring using fake documents and shell companies, with Texas businessman Alan Hao Hsu admitting his role. Hsus company received over $50 million in wire transfers from China for these purchases. Two other men were arrested, and the case underscores China-linked buyers efforts to bypass U.S. AI technology regulations.
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