Customs arrests two men, charges another with conspiring to smuggle encryption

WASHINGTON—The Customs Service arrested two men and charged another with conspiring to smuggle encryption technology into China.
The technology, embodied in two devices known as KIV-7HS units, is used to encode classified government communications.
Customs agents arrested Eugene Hsu of Blue Springs, Mo., and David Yang of Temple City, Calif. They were unable to arrest Carlson Ho, who is in Singapore. The federal affidavit said Ho is affiliated with the Singapore-based Wei Soon Loong Pvt. Ltd., which intended to buy the technology.