Chinese National Pleads Guilty in US Military Satellite Modem Smuggling Plot: Key Case Details

The Smuggling Scheme: Cryptocurrency, Black Markets, and a Mexican Route

The scheme was elaborate and involved multiple attempts to evade detection. According to court documents, Chen worked with co-conspirators in China to acquire restricted military communications hardware through black-market channels .

Key details of the operation include:

• Target Equipment: Military-grade satellite modems and radios manufactured for the US military by companies including L3Harris, Viasat, and Comtech . These devices are on the US Munitions List and strictly controlled .
• Payment Method: Chen and his co-conspirators paid over $40,000 as a deposit for 10 military-grade modems and then settled the balance using approximately $30,000 worth of the stablecoin Tether (USDT) . The use of cryptocurrency and encrypted communications was an attempt to evade detection .
• Planned Export Route: The group initially considered transshipment through Switzerland, then discussed delivery on the US Pacific island of Saipan, but ultimately decided to smuggle the equipment out of the US through Mexico .
• Arrest: Chen was arrested on October 6, 2025, in Saipan, and the case was subsequently transferred to Utah for prosecution .

Chen allegedly described the purchase as a