Case Breakers: Fast Facts You Need to Know
- Federal agents arrested two Chinese nationals with ties to ALX Solutions, accusing them of illegally exporting high-powered AI microchips to China.
- One suspect is an illegal alien who overstayed her visa, underscoring long-standing national security concerns about visa violators working in U.S. tech and AI sectors.
- Law enforcement alleges a deliberate scheme to funnel sensitive AI hardware to China through third countries, raising alarms about proprietary data leaks and compliance failures.
By Samuel Lopez – USA Herald
🔗 Follow USA Herald on X @RealUSAHerald
A New Federal Case Lifts the Lid on Visa Violators in Tech—and What It Means for America’s National Security
LOS ANGELES, CA – A new federal criminal complaint has cast a harsh spotlight on the vulnerabilities facing America’s technology sector when companies employ individuals with expired or illegal visas—an issue that, as USA Herald has reported extensively, has profound national security implications. The recent arrest of two Chinese nationals tied to ALX Solutions Inc. for the illegal export of advanced AI microchips to China is not just a business crime story; it’s a wake-up call for every U.S. company in the tech and artificial intelligence industries.
Why the ALX Solutions Scandal Demands National Attention
The details in the federal complaint read like a warning to tech companies flying under the regulatory radar. According to U.S. authorities, Chuan Geng, 28, a lawful permanent resident of Pasadena, and Shiwei Yang, 28, an illegal alien from El Monte whose visa expired, used their company, ALX Solutions Inc., as a conduit to smuggle tens of millions of dollars’ worth of advanced graphics processing units (GPUs) out of the United States. These specialized chips—designed for AI applications such as autonomous vehicles and medical diagnostic systems—are protected under federal export controls for a reason: they represent the front lines of American innovation.
Federal officials allege that, from October 2022 through July 2025, Geng and Yang orchestrated a sophisticated network to bypass U.S. export law, deliberately concealing their activities by routing shipments through Singapore and Malaysia—both common transshipment points for illegal goods destined for China. According to the criminal affidavit, ALX Solutions was founded mere months after the Commerce Department enacted stricter licensing for high-performance microchips—a move apparently intended to skirt those very regulations.
Inside the Allegations: How Export Laws Were Sidestepped
The government’s case is built on a combination of export records, business documents, and direct communications seized during a law enforcement raid. Investigators say that ALX Solutions regularly mislabeled shipments and failed to apply for the required licenses, in violation of the Export Control Reform Act—a federal offense carrying up to 20 years in prison.
Among the most damning evidence is the December 2024 shipment, in which ALX Solutions allegedly labeled the contents as GPUs not subject to federal restriction, when in fact the hardware fell squarely under the Commerce Department’s new rules. As detailed in the criminal complaint, neither Geng nor Yang ever sought, let alone obtained, federal authorization for their exports. Instead, ALX Solutions received numerous payments from Hong Kong and China-based firms, including a $1 million transfer from a Chinese company in January 2024, raising further suspicions of an intentional scheme to funnel technology to overseas buyers.
Federal officials seized mobile phones belonging to the defendants that contained incriminating communications about shipping export-controlled chips to China via Malaysia. These communications, detailed in the affidavit, allegedly show the defendants’ intent to evade U.S. law and move sensitive U.S. technology into Chinese hands.
Visa Violations: The Hidden Threat to America’s Tech Secrets
One aspect of the case that stands out—and demands wider industry attention—is the immigration status of the accused. Yang, according to federal authorities, was in the United States illegally, having overstayed her visa. As President Trump and senior national security officials have repeatedly emphasized, individuals who violate U.S. visa laws and work in critical tech and AI sectors pose unique risks to proprietary data, trade secrets, and even national defense.
Export and legal analyst alike are warning, that “This case shines a spotlight on the dangers of visa violators in the American technology sector. When companies ignore immigration law and compliance, they are exposing themselves and the country to serious national security risks.”
USA Herald has reported for years on the perils of visa overstays in sensitive industries. Federal officials warn that companies employing individuals without proper work authorization—especially in fields tied to AI, machine learning, or semiconductor research—are placing America’s ‘national secrets’ at risk of theft, espionage, or unauthorized export. The ALX Solutions case appears to be a textbook example.
Industry Compliance in the Crosshairs
The charges against Geng and Yang have sparked renewed calls for stricter compliance, more robust due diligence in tech hiring, and greater scrutiny of internal export controls. The U.S. Department of Commerce’s Bureau of Industry and Security, along with the FBI’s Counterintelligence Division, continue to investigate the matter.
Arraignment is scheduled for September 11 in U.S. District Court in Los Angeles. For now, Geng is out on a $250,000 bond, while Yang remains in custody awaiting a detention hearing. Prosecutors from the Central District of California and the DOJ’s National Security Division are leading the case.
🛑 A criminal complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
