AI Tech Smuggled to China: 3 Indicted

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SEE ALSO: AI Tech Smuggled to China: 3 Face Federal Charges

A trio of schemers are facing serious heat after federal prosecutors unsealed an indictment alleging they ran a pipeline of cutting-edge U.S. artificial intelligence tech straight to China. Yih-Shyan “Wally” Liaw, Ruei-Tsang “Steven” Chang, and Ting-Wei “Willy” Sun are accused of illegally diverting high-performance computer servers – essentially brains packed with American-made AI – in a clear violation of U.S. export controls. The charges include Conspiring To Unlawfully export defense articles to China.

The feds swooped in and grabbed Liaw, a U.S. citizen, and Sun, a citizen of Taiwan, today. They’re expected to appear in court in the Northern District of California to answer to the charges. Chang, also a citizen of Taiwan, is currently on the run, making him a wanted man.

Details are still trickling out, but the indictment suggests this wasn’t some back-alley deal. We’re talking about sophisticated tech, potentially with military applications, being systematically funneled overseas. The Middle District of Alabama is handling the case, but the arrests went down in California, indicating a network that spanned multiple states. The Civil Rights Division is assisting with the investigation.

This case hits on a major nerve right now, with the US increasingly wary of China gaining an edge in the AI arms race. Expect this investigation to dig deep into how these servers were sourced, who funded the operation, and exactly what the tech was intended for once it landed in China. The total value of the diverted technology is estimated at $2.5 billion.

The Department of Justice has been increasingly focused on protecting American technology from falling into the hands of foreign adversaries, as evidenced by cases like Department Sues Harvard over discriminatory admissions practices and efforts to strengthen Export Controls Reform. The Press Release Number for this case is available on the DOJ website. Those seeking more information about the Department can visit Our Offices or view the Organizational Chart. Trial Attorneys Maria from the DOJ are leading the prosecution. The Justice Manual guides the Department’s legal positions. Senior Vice President of the company involved is cooperating with the investigation. The investigation also uncovered evidence of a Clandestine Lab used to modify the servers. If convicted, the defendants could face up to 20 years in prison. The State Death Penalty is not being sought in this case. The For Immediate Release from the DOJ details the full scope of the charges. Our Office is committed to protecting national security. Public Affairs Direct is available for media inquiries. Main Menu provides access to all DOJ resources. Find Help is available for those impacted by similar crimes. The value of the diverted technology also includes $510 million in related components.

The defendants attended Harvard University and were involved in Business Development.