In brief
In a court proceeding in 2025, Liren “Ryan” Lai and Yuance Chen were convicted of arranging dead‑drop payments and recruiting U.S. military members for China’s security agency. Both received 30‑month prison terms and three years of supervised release, according to a DOJ statement.
In Washington, U.S. authorities on November 14, 2025 sentenced Liren ‘Ryan’ Lai and Yuance Chen, two Chinese nationals, to 30 months in federal prison for orchestrating covert cash transfers and recruiting U.S. military personnel on behalf of China’s Ministry of State Security.
The trio’s activities began no later than May 2021, when Lai—who entered the United States on a tourist visa—recruited Chen, a U.S. permanent resident, to assist in a long‑running espionage scheme that targeted American national‑security interests.
The scheme involved arranging "dead drop" cash payments, a covert method whereby money is left in a concealed location for pickup by a target. In May 2022, Lai and Chen helped facilitate a $10,000 transfer from China. The funds were dropped at a specified spot in California, where they were collected by a third party, the Department of Justice said. The pair later performed a similar operation for $20,000.
Beyond the dead‑drop payments, the men gathered extensive intelligence. Chen obtained photographs of a naval installation, of military recruits, and of active‑duty sailors. He also collected personal data on a U.S. Navy employee and maintained detailed biographies of potential intelligence targets.
In a statement released by the U.S. Department of Justice, the agency described the wrongdoing as a "long‑running," "extensive" and "brazen" effort to undermine U.S. national security. John A. Eisenberg, Assistant Attorney General for National Security, said the scheme "swiftly and thoroughly supported Chinese intelligence operations and recruitment in the United States."
Eisenberg’s remarks were echoed in the court documents that outlined the timeline of the men’s activities. The filings noted that Lai acted as an intermediary between Chen and Chinese intelligence officers until Chen was able to receive instructions directly from his handler. The DOJ said it had not yet determined how many individuals the pair recruited or how many payments were actually delivered.
Laid and Chen pleaded guilty in federal court in October 2025 amid a steepening diplomatic divide between Washington and Beijing. The DOJ’s guilty‑plea letters described the pair’s actions as a direct attempt to facilitate intelligence gathering for China’s foreign‑intelligence arm.
The sentencing imposed $30‑month prison terms for both men, followed by three years of supervised release, the DOJ said. The sentences were pronounced in the U.S. District Court for the District of Columbia, where the case had been heard by Judge Karen T. Houston.
Officials noted that the case highlights the continued presence of espionage activity in the United States. The U.S. National Security Agency announced an increased focus on counter‑intelligence efforts in military and defense contractor circles following the sentencing.
Late on November 15, U.S. officials confirmed that the two prisoners would be housed in a high‑security federal facility pending the outcome of their appeals. Beijing has yet to comment publicly on the convictions, and the Chinese government has historically advised its nationals to comply with U.S. laws when residing abroad.
For the communities involved, the news delivered a stark reminder of the ongoing threat posed by foreign intelligence operations. If additional evidence or witnesses come to light, investigators will review the case again, according to the DOJ press officer, who emphasized the need for a thorough and transparent legal process.
