Xiongmai (XM) Criminally Charged For Smuggling

•Published Sep 01, 2021 11:46 AM

Xiongmai is facing a criminal smuggling charge in the PRC over alleged tax evasion with its founder and chairman Chen Jenshing charged as well.

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Xiongmai confirmed the case stating it is "still under hearing procedure" following an appeal, but said it has "no effect on our customers" and company operations are "normal".

Potential sentences for the charge vary widely, from fines and less than 3 years detention to life imprisonment or even death for "cases of an extraordinary nature".

The PRC manufacturer is most known for its serious security incident in 2016 after millions of its devices were hijacked in the 2016 Mirai botnet (plus its 2018 critical vulnerability.)

In this post, IPVM examines this case and its potential impacts.

Xiongmai ********** IPVM Image

******** ('**') ** * ******* *** manufacturer ***** ** ********, *** **** city ** ********* *** *****, **** Chen ******** (*****)******* ******* **** ** ***** *** *******. Xiongmai ** ***-******* *** ***** ** a ***-**** *****/********** ********.

******** ******** *******, ********, ************* ********* in **** **** ****** ** *** DVRs *** ** ******* ************ **** ** * ***** *******-******* botnet ****** **** ****** ****** ******** ******.** ********,******** ****** **************, ******* *****' **** ******** ********* and *********** ***** ****** ******* *******.

Criminally ******* ** ****

*** ***** ************ **** ******** *** ******* ** November **** **** *** "***** ** smuggling ******** ***** *** ********" ([走私普通货物、物品罪) by *** ******** ************ ******'* *****.

**** ******* **** **** ******** (陈晋生), Xiongmai's ******* *** ********, **** *** Yan, * ***** ******** *********** *** owns **% ** *** *******, ***** with ** ******* (余文静) ***** ********** to ******** **** *** ****** ** determine.

*** ************** ******* **** **,*** **** [$*,***] in ******* ****** ** *** ***** when ********* ** ********* ********. **** could *** **** ******* ** *** much *** *** ******* ******* ********** ********* **** ********* ** *******/******* parties. ******** ******** ** ******* ***** details.

'Smuggling' ******* "******"

**** ***** ******** **** *** *** are******* * **% ****** (**% ***** ****), ***** *** ** ******* ******* export ******* *** ****** *********** ********** for ***-****** **********. "********* ******** ***** and ********" ******* *** "*** ** the **** ******",***** * ********* ************* *** **** **** & Wood *********. ******* *********************** ** ******* **** ******* *** much ***** ** ***** **** **** really ***.

**** ***** *** **** ******* ******** of ******* ***** ************ ************ ***** charged **** ****.

Case "***** ***** *** ******* *********"

******** **** **** **** *** **** is ***** ***** ***** *** ***** appeal, ********* ** ******* ******* ***********:

*** **** ** ***** ***** *** hearing *********; *** *********** **** ** subject ** *** ***** ***** ** Court. ** ***’* **** *** ******** information
**** **** ** ***** *** ********* and ***** ** ****** *******.

************ ******** *****'* *********** *** ******** *****'* **** *** been "******* ********", ********** *** ******. The **** ******* ** *** ******** case *** ** ***** ****.

*** ******** ************ ***** ******** *** of ********'* ******** ** *******, *** a ****************** *** ******* ********:

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*******, *** ***** ****** *** ***** been *******.

Potential ******** ********

*** ****** **** ***.*% ********** ************* ** ******* ********************,** * ********** ** ****** ******. If *********, '*********' ********* ****** ** how **** *** *** ******* *** the ******** ** *** *****, *** Article *** ** *********** **** ** *** ***:

*** *********, ** *********** "****" ***** be *******, **** **** **** ***** years ********* *** "******** *********** *********" or *-** ***** ********* *** "*******" cases ** **** ** ***** *** "extraordinary *******" *****.
*** *******, ** *** ***** ** the ***** ******* ** **** **** $23,000, *** *** ******** ********* ** "less **** ***** *****" *** ***** between *** ******* *** *** ******* of *** ****** *****. ** *** tax ******* ** **** $**,***, *** years ** **** ************ ** ******** plus ******** ******** ********** *** ***%-***% fines.
* ***** ******** ** **** ******** if "******** ** ** ************* ******" are **********.

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Impact ** ********

******** **** **** **** *** ********** are "******" **** "** ****** ** our *********"

**** **** ******* ***** **** **** 3 *****, *** *** ** ******* operations *** ******** *** ** ****** and **** ** ****** ** *** customers

** ** ****, ** *** *** authorities *** ** ********** ******** ** a **** **** *** ***** ********* for *** **********, *** **** ***** have ** ******.

Xiongmai ****** ** ****

** ************ ********* *** *** ***'* ***** ******* video ************ ************ *** ** *** never ******** ******, ****** ********* *** Dahua, ****** **** ********* ** *******. Certainly, ** *** **** *********** ******* * *********** ****** ** ******* media, **** **** ******** ********* ** "*************" *** * ************* ********'* ********** ** "***** ***" and *********** ********* *** *****'* ******** focus.

*****, *******, ******** *** **** *** rarely ********* ** *** ****, ***** has *** ******* *** ******** **** despite ** ***** ******; ** ********, PRC *********** ********** ********* **********'************************* *********'* *** *** **-*******.

*****, ********'*********** ********** $** ** $*** ******* ******* and ********** ** ***,*** ******* *** almost * ******* ******* * *****, although **** ** **********. **** ***** Xiongmai ***** *** ******* *****/********** *** they **** * ******* *********:

** *** **** ********* ** ***** Video ************ ******** *** ******* ********** by ******* *** ******** *** *********. Both ************* ******* *** ******** ******* are *** ********* ***** *** **. We ****** **** ****** **** *** those *****. ** *** ********* **** and ***** ** *** ******** ***********, and ******* *** ********* **** ************* and ********.

***** *** ***** **** ********'* ****** has **********, *.*. ******** *** *** posted*** ******* ******* *** ** **** ***** *********** ******* ****** ***** ********'* **** ******* ** * ****; its *-******** **************** ************ ** *****(***,*****).

******** *** ******* ************ *************** ***** ******** / ******** ***** surveillance ******** ** ***********/**** (******* **********) *** *** **** ***** **********.

Sign ** ********'* *********** ********

**** **** ****** **** *** ****** process ** ******** *** *******/********** ******* are *****. ***** ****, ** ** too ********* ** **** *** **** of ** ****** **** **** **** have ** ********. *******, *** **** is * **** ** *** ****'* diminishing ******** ***** *** ****** ** the *** *****.