Dingwei Chen, a 29-year-old citizen of the People’s Republic of China, pleaded guilty in federal court in Salt Lake City to violating the Arms Export Control Act after attempting to acquire U.S. military communications gear for export to China. The court accepted the plea, set sentencing for Oct. 19, and the case exposes a coordinated scheme to buy restricted hardware on the black market and move it through multiple countries to avoid detection.
Dingwei Chen admitted his role this week in an effort to divert American military technology to the PRC. U.S. District Judge David Sam accepted Chen’s guilty plea and scheduled sentencing for Oct. 19. Chen faces a maximum penalty of 20 years in prison under the charges he pleaded to.
The equipment Chen sought included military-grade satellite modems and radios originally made for U.S. forces by American firms. Those specific communications devices generally cannot be legally exported to China without a license from the Department of State’s Directorate of Defense Trade Controls. Export rules are strict because these systems are built to protect troops and maintain battlefield advantage.
“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.”
Court records show Chen worked with others inside China to try to source these systems from foreign arms dealers on the black market. They discussed several routes to move the gear out of reach of U.S. authorities and planned shipments through Switzerland and Saipan before settling on a plan to smuggle equipment through Mexico. Those shifting plans underscore how determined networks can be when trying to evade export controls.
“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.”
“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.”
Financial exchanges in the scheme shifted from cash to crypto as the group tried to mask payments and frustrate tracing efforts. After making an initial down payment of over $40,000, Chen and his co-conspirators switched to cryptocurrency, noting that “cold wallets are essentially anonymous bank accounts. Each transaction processed through them is private and untraceable.” Those comments show the mindset of smugglers who rely on opaque tools to move funds internationally.
The group later transferred roughly $30,000 worth of USDT to cover an order for 10 modems. Those payments corresponded to initial purchases and deposits, not the full value of the capability the defendants discussed procuring. Prosecutors say the down payments were only the start of a larger scheme to buy multiple advanced items.
To reduce the risk of interception, Chen and his associates used an encrypted messaging app for negotiations and logistics planning. In those chats Chen described the transaction as an initial deal and claimed he had funding to acquire tens of millions of dollars’ worth of additional military equipment. The combination of dark-market sourcing, transshipment plans, crypto payments, and encrypted messaging is a familiar pattern in efforts to steal or divert sensitive defense tech.
Assistant Attorney General Eisenberg publicly thanked the HSI and DCIS agents who worked the investigation and emphasized enforcement will continue. The case is being prosecuted by Trial Attorney Christopher Magnani of the National Security Division’s Counterintelligence and Export Control Section. Authorities say the prosecution sends a clear message that attempts to funnel U.S. military technology to hostile actors will be pursued and punished.
