US Dismantles Major China-Linked AI Tech Smuggling Networks, Seizes Millions in Advanced GPUs

"Operation Gatekeeper" Uncovers Extensive Smuggling Ring

US authorities have announced the successful dismantling of a major network linked to China, accused of illegally exporting advanced Artificial Intelligence (AI) technology from the United States. Dubbed 'Operation Gatekeeper,' the investigation, publicly revealed on December 8, 2025, has led to arrests and the seizure of over $50 million in Nvidia technologies and cash.

Among those implicated in the Houston-based operation is Alan Hao Hsu, 43, of Missouri City, and his company, Hao Global LLC, both of whom pleaded guilty on October 10, 2025, to smuggling and unlawful export activities. Court documents indicate that between October 2024 and May 2025, Hsu and his co-conspirators knowingly exported or attempted to export at least $160 million worth of export-controlled Nvidia H100 and H200 Tensor Core graphic processing units (GPUs). These high-speed GPUs are critical for AI applications and high-performance computing.

The scheme involved sophisticated methods to circumvent US export controls, including:

• Falsifying paperwork
• Removing Nvidia labels and relabeling GPUs with a fake company name, 'SANDKYAN'
• Misclassifying goods as generic computer parts
• Receiving over $50 million in wire transfers originating from the People's Republic of China to fund the operation

Also charged in connection with this scheme are Fanyue Gong (aka Tom Gong), 43, a PRC citizen residing in Brooklyn, New York, and Benlin Yuan, 58, a Canadian citizen residing in Mississauga, Ontario. Gong is charged with conspiracy to smuggle goods, while Yuan faces charges of conspiracy to violate the Export Control Reform Act.

Broader Crackdown on Illegal AI Tech Exports

These actions are part of a broader, intensified effort by US authorities to prevent the illegal transfer of sensitive AI technology. In a separate but related development, the Department of Justice announced on November 20, 2025, the indictment and arrest of four individuals—two American citizens and two Chinese nationals—for conspiring to illegally export advanced Nvidia microchips to China.

The arrested individuals include Hon Ning Ho, 34, of Tampa, Florida; Jing Chen, 45, of Tampa, Florida; Brian Curtis Raymond, 46, of Alabama; and Cham Li, 38, of California. They are accused of a 'deliberate and deceptive effort' to transship controlled Nvidia GPUs to China by falsifying paperwork, creating fake contracts, and misleading US authorities. This network allegedly routed shipments through Malaysia and Thailand, utilizing a Florida-based shell company, Janford Realtor, LLC, as a facade. They reportedly received nearly $4 million from China to finance their export scheme.

Between October 2024 and January 2025, some 400 Nvidia A100 GPUs were successfully exported to China in two shipments, with two other attempted shipments disrupted by law enforcement. The charges against these individuals include conspiring to violate the Export Control Reform Act and money laundering, with potential sentences of up to 50 years in prison.

National Security Implications and Official Stance

US officials have underscored the critical national security implications of these illicit activities. U.S. Attorney Nicholas J. Ganjei stated, 'Operation Gatekeeper has exposed a sophisticated smuggling network that threatens our Nation's security by funneling cutting-edge AI technology to those who would use it against American interests.' He emphasized that '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.'

Assistant Attorney General for National Security John A. Eisenberg reiterated the commitment to protecting America's technological edge, stating, 'The National Security Division, along with our partners, will vigorously enforce our export-control laws and protect this edge.' Assistant Director Roman Rozhavsky of the FBI's Counterintelligence Division added that the cases highlight the importance of interagency cooperation to protect sensitive US technologies.

The Department of Justice noted that China is actively seeking cutting-edge US technology to advance its goal of becoming the world leader in AI by 2030, with potential applications in military modernization and weapons development.