Xiongmai (XM) Criminally Charged For Smuggling

By Charles Rollet, Published Sep 01, 2021, 07:46am EDT

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

IPVM Image

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

******** ('**') ** * private *** ************ ***** in ********, *** **** city ** ********* *** Dahua, **** **** ******** (right)******* ******* **** ** ***** the *******. ******** ** low-profile *** ***** ** a ***-**** *****/********** ********.

******** ******** *******, ********, international ********* ** **** when ****** ** *** DVRs *** ** ******* were******** **** ** * Mirai *******-******* ****** ****** that ****** ****** ******** ******.** ********,******** ****** **************, ******* *****' **** password ********* *** *********** legal ****** ******* *******.

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

*** ***** ************ **** ******** *** charged ** ******** **** with *** "***** ** smuggling ******** ***** *** products" ([走私普通货物、物品罪) ** *** Shenzhen ************ ******'* *****.

**** ******* **** **** Jenshing (陈晋生), ********'* ******* and ********, **** *** Yan, * ***** ******** shareholder *** **** **% of *** *******, ***** with ** ******* (余文静) whose ********** ** ******** IPVM *** ****** ** determine.

*** ************** ******* **** **,*** yuan [$*,***] ** ******* duties ** *** ***** when ********* ** ********* products. **** ***** *** find ******* ** *** much *** *** ******* as***** ********** ********* **** ********* to *******/******* *******. ******** declined ** ******* ***** details.

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

**** ***** ******** **** the *** ********** * **% ****** (**% ***** ****), ***** *** ** reduced ******* ****** ******* but ****** *********** ********** for ***-****** **********. "********* ordinary ***** *** ********" charges *** "*** ** the **** ******",***** * ********* ************* *** **** King & **** *********. Typical *********************** ** ******* **** imports *** **** ***** in ***** **** **** really ***.

**** ***** *** **** another ******** ** ******* video ************ ************ ***** charged **** ****.

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

******** **** **** **** the **** ** ***** being ***** *** ***** appeal, ********* ** ******* further ***********:

*** **** ** ***** under *** ******* *********; all *********** **** ** subject ** *** ***** trial ** *****. ** don’t **** *** ******** information

**** **** ** ***** not ********* *** ***** in ****** *******.

************ ******** *****'* *********** *** ******** *****'* case *** **** "******* archived", ********** *** ******. The **** ******* ** the ******** **** *** in ***** ****.

*** ******** ************ ***** streamed *** ** ********'* hearings ** *******, *** a ****************** *** ******* ********:

IPVM Image

*******, *** ***** ****** has ***** **** *******.

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

*** ****** **** ***.*% ********** ************* ** ******* ********************,** * ********** ** highly ******. ** *********, 'smuggling' ********* ****** ** how **** *** *** avoided *** *** ******** of *** *****, *** Article *** ** *********** **** ** *** PRC:

  • *** *********, ** *********** "fine" ***** ** *******, with **** **** ***** years ********* *** "******** responsible *********" ** *-** years ********* *** "*******" cases ** **** ** years *** "************* *******" cases.
  • *** *******, ** *** value ** *** ***** avoided ** **** **** $23,000, *** *** ******** detention ** "**** **** three *****" *** ***** between *** ******* *** 500 ******* ** *** evaded *****. ** *** tax ******* ** **** $77,000, *** ***** ** life ************ ** ******** plus ******** ******** ********** and ***%-***% *****.
  • * ***** ******** ** also ******** ** "******** of ** ************* ******" are **********.

IPVM Image

Impact ** ********

******** **** **** **** its ********** *** "******" with "** ****** ** our *********"

**** **** ******* ***** more **** * *****, all *** ** ******* operations *** ******** *** in ****** *** **** no ****** ** *** customers

** ** ****, ** the *** *********** *** up ********** ******** ** a **** **** *** harsh ********* *** *** executives, *** **** ***** have ** ******.

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

** ************ ********* *** *** ***'* third ******* ***** ************ manufacturer *** ** *** never ******** ******, ****** Hikvision *** *****, ****** this ********* ** *******. Certainly, ** *** **** Xiongmai*** ******* * *********** ****** by ******* *****, **** Chen ******** ********* ** "*************" *** * ************* ********'* ********** ** "price ***" *** *********** Hikvision *** *****'* ******** focus.

*****, *******, ******** *** Chen *** ****** ********* in *** ****, ***** has *** ******* *** criminal **** ******* ** being ******; ** ********, PRC *********** ********** ********* **********'************************* *********'* *** *** co-founder.

*****, ********'*********** ********** $** ** $*** million ******* *** ********** of ***,*** ******* *** almost * ******* ******* a *****, ******** **** is **********. **** ***** Xiongmai ***** *** ******* sales/production *** **** **** a ******* *********:

IPVM Image** *** **** ********* to ***** ***** ************ industry *** ******* ********** by ******* *** ******** and *********. **** ************* markets *** ******** ******* are *** ********* ***** for **. ** ****** keep ****** **** *** those *****. ** *** investing **** *** ***** on *** ******** ***********, and ******* *** ********* from ************* *** ********.

***** *** ***** **** Xiongmai's ****** *** **********, e.g. ******** *** *** posted*** ******* ******* *** ** **** while *********** ******* ****** ***** page****'* **** ******* ** a ****; *** *-******** platform******** ************ ** *****(***,*****).

******** *** ******* ************ *************** ***** ******** / finished ***** ************ ******** to ***********/**** (******* **********) *** *** **** signs **********.

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

**** **** ****** **** the ****** ******* ** complete *** *******/********** ******* are *****. ***** ****, it ** *** ********* to **** *** **** of ** ****** **** case **** **** ** Xiongmai. *******, *** **** is * **** ** the ****'* *********** ******** since *** ****** ** the *** *****.

Comments (3)

*********** ****. ****** *** the ****.

Agree: 1
Disagree
Informative
Unhelpful
Funny

* ***** ******** ** also ******** ** "******** of ** ************* ******" are **********.

**** ****** *** **** "death *** *****" ** a ***** *** *****...

Agree
Disagree
Informative
Unhelpful
Funny: 1

* *** ******* ** XM ** ******* **** had ****** **** *** tiger ***** ******, **** stink ****** ** *** in * **********'* ******* :-/ :

IPVM Image

Agree
Disagree
Informative
Unhelpful
Funny: 1
Read this IPVM report for free.

This article is part of IPVM's 7,210 reports and 960 tests and is only available to subscribers. To get a one-time preview of our work, enter your work email to access the full article.

Already a subscriber? Login here | Join now
Loading Related Reports