A 29-year-old citizen of the People’s Republic of China pleaded guilty in federal court earlier today to violating the Arms Export Control Act after attempting to illegally acquire U.S. military communications technology.
Dingwei Chen entered the plea in Salt Lake City before U.S. District Judge David Sam, who accepted the plea and set sentencing for Oct. 19. Chen faces up to 20 years in prison.
According to court records, Chen attempted to buy military-grade satellite modems and radios manufactured for the U.S. military by domestic companies. The hardware falls under U.S. export control laws managed by the Department of State’s Directorate of Defense Trade Controls, which generally denies licenses to export military equipment to China.
Court documents indicate Chen worked with individuals in China to source the hardware from foreign arms dealers on the black market and evaluated several export routes. The co-conspirators initially considered shipping the items through Switzerland and later discussed picking them up in Saipan before agreeing to attempt to smuggle them through Mexico.
To finance the purchase of 10 modems, Chen and his co-conspirators made an initial cash down payment exceeding $40,000 before transitioning to cryptocurrency payments. They remitted approximately $30,000 in USDT, a stablecoin cryptocurrency, stating in communications that “cold wallets are essentially anonymous bank accounts. Each transaction processed through them is private and untraceable.”
Investigators noted that the group used encrypted messaging applications to coordinate the transactions. During those communications, Chen stated that the initial purchase was part of a larger plan and indicated he had funding to secure tens of millions of dollars in additional military hardware.
Federal officials highlighted the national security implications of the case following the plea entry.
“Chen tried to divert sensitive U.S. military technologies to the People’s Republic of China, technologies the PRC could have used against us in the future,” said Assistant Attorney General for National Security John A. Eisenberg. “These advanced technologies are a product of United States ingenuity and investment, and the National Security Division will act together with our partners across the government to enforce our laws to protect the military advantage bestowed by such technologies.”
Law enforcement officials stated the case involved coordinated efforts across multiple jurisdictions.
“Today’s guilty plea underscores the serious consequences for those who attempt to illegally procure, export, or transfer sensitive U.S.-origin military equipment or technology in violation of our nation’s export control laws,” said Acting Special Agent in Charge Spiros Karabinas of U.S. Immigration and Customs Enforcement Homeland Security Investigations (HSI) New Jersey. “Protecting American innovation and preventing critical technologies from reaching foreign adversaries, terrorist organizations, and transnational criminal organizations is a core national security mission. This investigation reflects the exceptional collaboration between HSI offices across the United States and its territories and the Defense Criminal Investigative Service to disrupt an illicit procurement network and hold accountable those who threaten the security of the United States.”
Defense officials underscored the military reliance on the underlying technology.
“Advanced communication systems – such as those increasingly sought after by adversaries for their sophisticated capabilities – are essential to protecting our warfighters and ensuring they can operate safely and decisively across modern battlespaces,” said Director James R. Ives of the Defense Criminal Investigative Service (DCIS). “Safeguarding this technology is critical to the men and women who rely on these systems when protecting our nation. As the criminal investigative arm of the Department of Defense’s Office of Inspector General, DCIS will aggressively pursue those who attempt to obtain and illegally export sensitive technology that could pose future risks to our troops and ensure they face justice.”
The investigation was conducted by HSI and DCIS. Trial Attorney Christopher Magnani of the National Security Division’s Counterintelligence and Export Control Section is prosecuting the case.
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