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US convicts two Chinese nationals in espionage case involving covert payments

Two Chinese citizens have been convicted in the United States for their roles in a foreign intelligence operation that utilized clandestine cash exchanges. The scheme involved facilitating at least $30,000 in covert payments through dead drop methods to individuals within US territory.

LSN World News · 31 October 2026

US convicts two Chinese nationals in espionage case involving covert payments

Liren Lai and Yuance Chen pleaded guilty to charges related to their involvement in espionage activities, admitting to organizing secretive cash transfers as part of what authorities characterized as a coordinated intelligence operation. The dead drop method—a tradecraft technique whereby operatives leave money or materials in predetermined locations for retrieval by others—formed the core of the payment scheme, allowing participants to avoid direct contact.

The two nationals acknowledged facilitating payments totaling no less than $30,000 through these clandestine channels to recipients based in the United States. The case represents a significant law enforcement success in countering foreign intelligence activities on American soil, highlighting ongoing concerns about espionage operations conducted by state and non-state actors within US borders.

The convictions underscore the persistent challenge facing US authorities in detecting and dismantling foreign intelligence networks operating domestically. Federal investigators have intensified scrutiny of transnational espionage schemes in recent years, particularly those involving covert financial transfers designed to evade detection by financial surveillance systems.