Chinese National Pleads Guilty to Smuggling US Military Satellite Modems: The Full Case Details

The Smuggling Plot

According to court records and the U.S. Department of Justice, Chen conspired with individuals in China to purchase restricted military-grade communications hardware — including satellite modems and radios manufactured specifically for the U.S. military by American defense contractors L3Harris, Viasat, and Comtech . They contracted with a U.S. subsidiary of a Swiss defense company to buy 10 modems .

To evade detection, Chen and his co-conspirators used encrypted messaging applications and made payments in cryptocurrency (Tether, USDT) . They paid approximately $40,000 in deposits and another $30,000 in final payments (totaling over $70,000) for the 10 military modems .

The Route to China

The group discussed multiple covert export routes before settling on a plan. Initial proposals included shipping the equipment through Switzerland or retrieving it in Saipan in the Northern Mariana Islands . Ultimately, they agreed to smuggle the equipment through Mexico . According to prosecutors, Chen described the attempted purchase as only a "test transaction," claiming he had access to funds to buy tens of millions of dollars of additional military equipment .

The Legal Framework

The hardware Chen attempted to acquire is on the U.S. Munitions List and is subject to strict export controls under the International Traffic in Arms Regulations (ITAR) . To legally export such equipment, one must obtain a license from the U.S. Department of State's Directorate of Defense Trade Controls (DDTC) . The U.S. government's policy for export licenses to China is "presumption of denial" — meaning such licenses are almost never granted .

"Chen tried to divert sensitive U.S. military technologies to the People's Republic of China, technologies the PRC could have used against us," said Assistant Attorney General for National Security John A. Eisenberg in a statement .

Sentencing and Maximum Penalty

Judge David Sam accepted Chen's guilty plea and scheduled sentencing for October 19, 2026 . Chen faces a maximum penalty of 20 years in federal prison . He remains in custody pending sentencing.

Investigation and Enforcement

The case was investigated by agents from U.S. Homeland Security Investigations (HSI) and the Department of Defense Criminal Investigative Service . The investigation uncovered the full scope of the conspiracy, including the use of encrypted communications and cryptocurrency to avoid detection, as well as the various planned smuggling routes through Switzerland, Saipan, and Mexico .

Broader Significance

This case highlights the ongoing tensions between the U.S. and China over technology transfer and export control enforcement. The attempted procurement of restricted military communications hardware — particularly satellite modems that could be used for military communications and intelligence operations — represents a significant national security concern for the United States . The prosecution also underscores U.S. efforts to protect sensitive military technologies from being acquired by foreign adversaries through black market channels and complex smuggling networks.

The case against Dingwei Chen is one of several recent prosecutions targeting the illegal export of U.S. military technology to China, reflecting a broader crackdown on technology transfer that could threaten U.S. military advantages .