"Citing export controls that took effect in 2022, the indictment said the US is trying to disrupt China's plan to build exascale supercomputers for military and surveillance use. "These capabilities are being used by the PRC for its military modernization efforts and in connection with the PRC's weapons design and testing, including for weapons of mass destruction, as well as in connection with the PRC's development and deployment of advanced AI surveillance tools," the indictment said."
"The Justice Department said the conspirators used Janford Realtor, LLC, a Florida-based company that was not involved in real estate despite its name, "as a front to purchase and then illegally export controlled GPUs to the PRC." Ho and Li owned and controlled Janford Realtor, while Raymond operated an Alabama-based electronics company that "supplied Nvidia GPUs to Ho and others for illegal export to the PRC," the Justice Department said."
"The conspirators paid each other "kickbacks" or commissions on the sale and export of the Nvidia chips, the indictment said. The money laundering charges involve a variety of transfers from two Chinese companies to Janford Realtor and the Alabama electronics company, the indictment said. The indictment lists nine wire transfers in amounts ranging from $237,248 to $1,150,000. Raymond was reportedly released on bond, while the other three alleged conspirators are being detained."
U.S. prosecutors allege four conspirators used a Florida company, Janford Realtor LLC, as a front to purchase and illegally export advanced Nvidia GPUs to the People's Republic of China. The indictment states the GPUs were intended to help China build exascale supercomputers for military modernization, weapons design and testing, and advanced AI surveillance systems, citing export controls effective in 2022. An Alabama electronics firm reportedly supplied the chips. The scheme involved kickbacks and money laundering, with nine listed wire transfers from two Chinese firms ranging from $237,248 to $1,150,000. Three defendants remain detained; one was released on bond.
Read at Ars Technica
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