Hunter Biden Tied to Chinese Firm Raided by Feds in Malware Probe

The federal investigation into PAX Global Technology has uncovered a troubling nexus of suspicious data activities. The Chinese payment firm came under intense scrutiny after the FBI and other agencies raided its Florida facilities amid alarming reports. How did Pax Global Technology develop a connection with Hunter Biden?

Federal Investigation Reveals Troubling Data Security Concerns

PAX Global Technology, a Chinese payment firm, has found itself at the center of a federal investigation focusing on suspicious data transmissions through its payment processing systems. In late 2021, the FBI and other federal agencies conducted a raid on PAX Technology Inc., the company’s Florida-based subsidiary, over concerns that data was being improperly channeled to unknown overseas destinations.

Security researchers reported that PAX terminals were being utilized both as malware “droppers” and as “command-and-control” locations for coordinating cyberattacks and collecting sensitive information. “The payment processor found that the PAX terminals were being used both as a malware ‘dropper’ — a repository for malicious files — and as ‘command-and-control’ locations for staging attacks and collecting information,” according to cybersecurity publication KrebsOnSecurity.

The U.S. Treasury Department has expressed serious concerns about the security implications, with a spokesperson stating, “Treasury’s preliminary assessment is that data transmission by these devices indicates the possibility of risks to customer data confidentiality.” Following the raid, a senior PAX executive resigned, though the company commissioned an independent audit claiming no personal data had been exfiltrated.

Chinese Ownership and Political Connections Raise Red Flags

The investigation into PAX Global Technology has revealed complex ownership structures with potential political implications. PAX’s controlling shareholder is Hi Sun Technology, with Chinese financier Che Feng identified as the company’s second-largest shareholder.

Che Feng’s connection to Hunter Biden has added another layer of complexity to the situation. According to reports, Feng has been linked to Hunter Biden through various business dealings, including helping secure deals involving Chinese capital.

Further complicating matters, Che Feng has reportedly been arrested in China for money laundering and bribery. This connection raises questions about potential conflicts of interest and foreign influence in U.S. financial systems, especially given the ongoing investigation into Hunter Biden’s business activities.

Ongoing Concerns and Limited Regulatory Response

Despite the serious nature of the allegations and the federal investigation, PAX devices remain in use throughout the United States. Many major U.S. retailers continue to deploy these payment terminals, though some companies have ceased using them after receiving what they described as unsatisfactory responses from PAX regarding security concerns.

The FBI has maintained a stance of limited disclosure on the matter, with an official stating, “The investigation remains active and ongoing, and no additional information can be confirmed at this time.” This ongoing investigation occurs against a backdrop of increasing tensions between U.S. authorities and Chinese technology companies over data security and potential espionage concerns.

The situation highlights significant gaps in oversight and transparency regarding foreign-owned payment processing systems operating within the United States. Concerns about data security, consumer protection, and national security continue to mount as investigations proceed, raising questions about the adequacy of current regulatory frameworks to address the potential threats posed by foreign-controlled financial technology systems.

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