Treasury fined Amidi, LLC $200,000 for failing to file a required notification after its Chinese subsidiary fund invested about $92,478 in April 2025 in Shanghai Qiongche Intelligent Technology (Noematrix), a private Chinese company developing AI, robotics and embodied intelligence. Under the Outbound Investment Security Program, effective January 2025, US persons must notify Treasury when a controlled foreign entity makes an investment into China-linked entities engaged in quantum computing, AI or semiconductors that would be notifiable if made directly. Treasury said the transaction was flagged through its regular compliance monitoring. The release also notes the Comprehensive Outbound Investment National Security Act of 2025, passed December 18, which will extend the program’s jurisdiction to additional countries and technology sectors.
Treasury issues first penalty under outbound investment security program
The Treasury Department fined Amidi, LLC, the parent of Plug and Play Tech Center, $200,000 on Wednesday for failing to report a Chinese fund's investment in an AI and robotics startup, the first civil penalty under the outbound investment security program.
Why it matters: The first enforcement action under the program signals the US is moving from rulemaking to punishment on China tech investment, just as Congress expands the program's reach.
Data as of Treasury press release October 7, 2026. Single-sourced to the official release; penalty details and the underlying transaction unverified beyond Treasury's account.
Sources
- Treasury Announces Enforcement Penalty for Violation of Outbound Program · US Department of the Treasury · 2026-10-07