Two Chinese nationals have been sentenced to prison for conspiring to act as agents for the Chinese government.
The Department of Justice (DOJ), in an Oct. 30 release, said that U.S. authorities sentenced Liren “Ryan” Lai, 40, and Yuance Chen, 39, to 30 months in prison and three years of supervised release, for spying on the U.S. military in multiple ways. The sentencing came after they pleaded guilty to the charges against them.
“By their own admission, Chen and Lai operated as illegal agents for the Chinese government on U.S. soil, carrying out clandestine intelligence work that included making covert payments, collecting sensitive military information, and attempting to recruit American service members,” said Assistant Director Roman Rozhavsky, of the FBI’s Counterintelligence and Espionage Division.
“The Chinese government’s efforts to infiltrate our armed forces demonstrate just how far it will go to threaten U.S. national security, but it has underestimated the FBI’s commitment to thwarting its illegal activity and holding its agents accountable,” he added. “Let this sentencing serve as a clear warning: If you attempt to jeopardize the safety and security of our service members, our citizens, or our nation, justice will find you.”
How the Spying Scheme Functioned
The DOJ said the defendants agreed to operate under the control of China’s Ministry of State Security (MSS) to carry out intelligence activities in the U.S., including facilitating clandestine cash payments in exchange for national security and military information—as well as helping to recruit potential U.S. military intelligence assets.
Citing court documents, the DOJ said Lai and Chain acted for the MSS from no later than May 2021. Lai recruited Chen into the scheme, and together they facilitated a secret cash payment of around $10,000 in January 2022 in Livermore, Calif., while they were in China.
Chen also obtained photos of Navy Base Kitsap in Bremerton, Wash., and photos and videos of military recruits and active-duty sailors inside a Navy recruiting station in Southern California, per the DOJ.
Chen also collected personal identifying information about a U.S. Navy employee and documented biographical information about military personnel who were potential intelligence targets.
In March 2023, Lai delivered a cell phone to Chen in the U.S. to communicate secretly with the MSS. Chen also traveled to China in 2024 and 2025 to receive more assignments from the MSS. Lai traveled to China in April 2025 to do just that.
In May 2025, Lai traveled to Phoenix to facilitate a secret cash payment of around $20,000, the DOJ said.
How Authorities Caught Lai and Chen
Authorities arrested Lai and Chen on June 27, 2025, during an FBI counterintelligence and law enforcement operation.
A federal grand jury in the Northern District of California indicted the pair on July 1, 2025, and charged both defendants with conspiracy to act as agents of a foreign government without prior notification to the attorney general. They were also charged for acting as agents of a foreign government without prior notification.
Lai pleaded guilty to both of these offenses on Dec. 12, 2025, while Chen pleaded guilty to both offenses on Feb. 20 of this year.
Assistant Attorney General for National Security John A. Eisenberg said in a statement that the pair’s activities “were extensive and brazen.”
“Liren Lai and Yuance Chen operated in a long-running scheme to undermine U.S. national security by supporting Chinese intelligence operations and recruiting in the United States,” Eisenberg said.
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16 Comments
The cost guidance is better than expected. If they deliver, the stock could rerate.
Good point. Watching costs and grades closely.
Nice to see insider buying—usually a good signal in this space.
Silver leverage is strong here; beta cuts both ways though.
The cost guidance is better than expected. If they deliver, the stock could rerate.
I like the balance sheet here—less leverage than peers.
Good point. Watching costs and grades closely.
Good point. Watching costs and grades closely.
Nice to see insider buying—usually a good signal in this space.
Good point. Watching costs and grades closely.
Good point. Watching costs and grades closely.
The cost guidance is better than expected. If they deliver, the stock could rerate.
The cost guidance is better than expected. If they deliver, the stock could rerate.
Production mix shifting toward USA might help margins if metals stay firm.
Silver leverage is strong here; beta cuts both ways though.
Good point. Watching costs and grades closely.