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First on Fox: Two Chinese citizens have to face serious allegations, as they allegedly worked as agents of the Government of People’s Republic of China to collect intelligence information about US Navy service members and bases, while also recruited other military members to work for the country’s main foreign intelligence service, state security ministry (MSS).
The Department of Justice (DOJ) said that the Chinese National Yans Chain, who lives in Happy Valley, Oregon and Liran Lai, was arrested on Friday, who used to travel to Houston on a tourist visa in April 2025. Both individuals face allegations by the state’s security ministry of taking care of various Clandstine intelligence in the US.
With the recruitment of potential MSS assets and assisting in gathering Intel about service members and bases, both people are accused of facilitating the “dedic drop” payment of cash by MSS.
The FBI arrested both men on Friday – Chen was arrested in Happy Valley, while Li was arrested in Houston – Navy with the help of Criminal Search Seva (NCIS).
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The Chinese National Juance Chain, the second from the left, is accused of working as an agent of the Chinese government to collect intelligence about members of the US Navy service and bases. According to a criminal complaint filed in the federal court, in January 2025, the chain was photographed on the deck of USS Abraham Lincoln. (US District Court for Northern District of California)
FBI director Kash Patel told Fox News Digital, “Today’s arrest reflects FBI’s unwavering commitment to protect our national security and protect our army’s integrity.” “Accused persons were working on behalf of an hostile foreign intelligence service – part of the widespread effort to infiltrate and weaken our institutions of the Chinese Communist Party. Thanks to excellent coordination with our colleagues, including NCIS, we disrupted those efforts and sent a clear message: will not tolerate spying on the soil of the United States.”
Citing a criminal complaint filed in the northern district of California, DOJ said that the PRC government does intelligence activities against the US using various means including MSS, which is involved with collecting intelligence on citizens. MSS is also responsible for foreign intelligence, counter -protests and political security.
The complaint alleged that LAI recruited chains to work for MSS in 2021.
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The FBI arrested two Chinese citizens on June 27, who was accused of working as an agent of a foreign country in the US. (Getty image)
The two people were in Guangzhou, China in January 2022, when they allegedly collaborated by the MSS to facilitate at least $ 10,000 dead-drop payment. The operation included working with other people in the US, which was to leave a backpack with cash in a one -day -day locker in Livermore, California.
Lai and Chen continued to work on behalf of MSS after cash drop payment and helped identify the Navy persons, who could also be ready to work for the MSS.
DOJ said in 2022 and 2023, both visited a Navy Recruitment Center in San Gabriel, California along with the establishment of the US Navy in the state of Washington.
While living in the recruitment center, Chen allegedly took photographs of a bulletin board, including the names, programs and homes of the Navy recruitments. The DOJ claimed that most of the people listed on the board stated that their hometown was “China” and the photos were sent to an MSS intelligence officer in China, DOJ claimed.
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The Chinese National Yuance Chen is accused of facilitating the “dead drop” payment of cash by the Chinese government. (US District Court for Northern District of California)
The DOJ also alleged that the MSS directed the chain as to what the possible recruitment had to say, when it came to pay for the MSS, for possible recruitment for the preferred recruitment to reduce the risk of the preferred naval job assignment and the risk of the chain.
Chen eventually began to communicate with a Navy member on social media, DOJ alleged, and arranged for a visit to USS Abraham Lincoln in San Diego with the employee. Chen also sent information about the employee to MSS, it has been said in the complaint.
In April 2024 and March 2025, Chen traveled to Guangzhou, where he met with MSS intelligence officials, the complaint accused of discussing payment for specific works.
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Read criminal complaint – App user, click here:
Lai also allegedly traveled to Houston in April 2025 and claimed that the trip was the purpose of his business as an online retailer. He also claimed that he would remain in Houston for two weeks.
But on 9 May 2025, which was more than four weeks after arriving in the US, Lai was seen traveling in a car with a California partner from Houston, and back on 15 May in Junction, Texas.
Chen and Lai have been accused of operating in the US as an agent of a foreign government without informing the US Attorney General. If convicted, both men are fined up to $ 250,000 and a fine of up to 10 years behind bars.
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Assistant Attorney General of the National Security Division of the Department of Justice, John Easenberg, said, “Hostel foreign intelligence services like PRC’s State Security Ministry dedicate years to recruit individuals and to cultivate as intelligence property to make their bidding within the United States.” “Under my leadership, the National Security Division will continue to protect the way of life by highlighting the Clandstine detective Network of our opponents in our nation and life.”
