A Chinese national who tried to buy military-grade satellite modems and radios for shipment to China has pleaded guilty in federal court in Salt Lake City.
Chen Dingwei, 29, pleaded guilty on Aug. 10 to violating the Arms Export Control Act. He was accused of working with co-conspirators to attempt to buy restricted items on the U.S. Munitions List without obtaining a license or approval from the Department of State’s Directorate of Defense Trade Controls.
“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.”
Chen was arrested in Saipan on Oct. 6, 2025, after then-Magistrate Judge Cecilia Romero of the District Court of Utah signed an arrest warrant.
According to an affidavit filed by a special agent with the Homeland Security Investigations (HSI), a China-based company—where Chen’s co-conspirator held a job as the general manager—signed two contracts with a U.S.-based subsidiary of a Swiss company to buy 10 modems manufactured by U.S. companies L3Harris, Viasat, and Comtech.
HSI became aware of the Chinese company’s procurement in March 2025, according to the affidavit.
In April 2025, the Chinese company sent the U.S. subsidiary an initial down payment of more than $42,000.
A month later, the U.S. subsidiary wrote to the Chinese company, informing it that it was “not permitted to export these items,” according to the affidavit. In response, the Chinese company recommended having the products sent to Switzerland first before delivering them to China.
In subsequent emails in June 2025, the Chinese company suggested sending the products to Saipan, writing in one email, “I will arrange for personnel to pick up the goods in Saipan.”
Later, the Chinese company told the U.S. subsidiary to create what it called a “cold wallet,” which it explained as a cryptocurrency wallet that was “essentially anonymous bank accounts” and through which transactions would be “private and untraceable,” according to the affidavit.
On July 3, 2025, the U.S. subsidiary put the Chinese company in touch with a Utah-based HSI undercover agent posing as its employee.
The agent subsequently began communicating with Chen via an encrypted app, where Chen identified himself as the “buyer” of the 10 modems.
In subsequent communications, the undercover agent insisted on meeting Chen and his co-conspirator in Saipan to consummate the deal. Chen expressed concerns, saying Saipan was “not a safe place to meet” because it is part of the United States, and suggested Singapore as a “much more safe” alternative.
Chen also rejected meeting in any of the Five Eyes countries, an intelligence and security alliance comprising Australia, Canada, New Zealand, the United Kingdom, and the United States. He suggested the undercover agent deliver the goods to “intermediaries” in the United States.
“Chen also made several proposals for how to smuggle the goods to China, even indicating that he had past experience with smuggling goods from the United States,” the affidavit reads. One such proposal was to smuggle the modems to Mexico via Texas.
Before Chen traveled to Saipan, he made another down payment for the modems by transferring more than $32,000 in USDT—also known as Tether—to the undercover agent’s cryptocurrency wallet.
The Department of Homeland Security became aware of Chen’s travel to Saipan in its database on Oct. 3, 2025.
“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,” James R. Ives, director of the Defense Criminal Investigative Service, which is the criminal investigative arm of the Department of War’s Office of Inspector General.
The Department of Justice said Chen is scheduled to be sentenced on Oct. 19, and he faces a possible maximum sentence of 20 years in prison.
Chen’s lawyer declined to comment when contacted by The Epoch Times.
