FBI investigators have raided the U.S. headquarters of Chinese payment firm PAX Global Technology, which has ownership links to a financier connected to Hunter Biden, amid allegations of suspicious data transmissions from payment terminals to unknown overseas destinations.
At a Glance
- PAX Global Technology, a Chinese payment processor, is under federal investigation for suspicious data transmissions and potential cybersecurity vulnerabilities
- The company has ownership connections to Che Feng, a Chinese financier with reported ties to Hunter Biden
- FBI agents raided PAX’s Florida-based subsidiary over concerns that data was being funneled to unknown overseas destinations
- PAX devices, still used by major U.S. retailers, were reportedly functioning as malware repositories and command-and-control locations
- The situation raises significant questions about oversight, transparency, and data protection in the U.S. financial sector
Chinese Payment Processor Under FBI Scrutiny
Federal investigators have launched a probe into PAX Global Technology, a Chinese payment firm with terminals widely deployed across American retail outlets. The investigation centers on allegations that PAX devices have been transmitting data to overseas locations without proper authorization or transparency. In late 2021, FBI agents raided PAX Technology Inc., the company’s Florida-based subsidiary, alongside other federal agencies, signaling the seriousness of the security concerns surrounding the company’s operations in the United States.
“The investigation remains active and ongoing and no additional information can be confirmed at this time,” an FBI official stated regarding the ongoing probe into PAX Technology’s operations.
The Treasury Department has also expressed significant reservations about PAX’s operations. According to reports, the agency’s preliminary assessment indicated potential risks to consumer data confidentiality based on the pattern of data transmissions observed from PAX terminals.
Though an independent audit commissioned by PAX claimed no personal data was exfiltrated, confidence in the company appears to have been shaken, as evidenced by a senior PAX executive’s resignation following the federal raid.
Concerning Technical Vulnerabilities
Technical analysis of PAX terminals has revealed alarming security issues that extend beyond simple data privacy concerns. Security researchers identified that the payment processors were functioning as repositories for malicious files and serving as command-and-control points for coordinating potential cyberattacks. This dual functionality suggests the terminals could be compromised to execute sophisticated attacks against American financial infrastructure and potentially harvest sensitive consumer financial information.
Despite these security concerns, PAX payment terminals remain in use across major U.S. retail outlets, although some companies have discontinued deploying the devices after determining PAX’s responses to security inquiries were unsatisfactory. The continued presence of potentially compromised payment systems in American stores raises significant questions about the oversight and security standards being applied to foreign-owned financial technology operating within the United States.
Connection to Chinese Financier with Biden Links
The corporate structure behind PAX Global Technology reveals connections that have raised additional concerns among investigators. The company’s controlling shareholder is Hi Sun Technology, while Che Feng serves as the second-largest shareholder. Investigation records indicate that Che Feng has been arrested in China for money laundering and bribery charges, adding another layer of complexity to the investigation into PAX’s operations on American soil.
Particularly noteworthy are the reported connections between Che Feng and Hunter Biden. According to investigative reports, Feng was involved in securing deals with Chinese capital that benefited Hunter Biden’s business interests. These connections have amplified concerns about potential foreign influence and the security implications of having payment processing technology with such ownership connections widely deployed across American retail establishments, handling millions of consumer financial transactions daily.
Implications for Financial Security
The investigation into PAX Global Technology highlights growing concerns about the security of payment processing systems and the potential for foreign entities to access sensitive financial data. As financial transactions increasingly rely on digital processing, the security and integrity of these systems become critical to national security and consumer protection. The case raises serious questions about the adequacy of current regulatory frameworks for vetting foreign-owned technology operating in critical financial infrastructure positions within the United States.
The PAX investigation occurs against a backdrop of increased scrutiny of Chinese technology companies operating in the United States and growing tensions between American law enforcement agencies and those who perceive their investigations as politically motivated. As this investigation continues, it will likely inform broader policy discussions about technology security, foreign investment reviews, and the protection of America’s financial data infrastructure from foreign exploitation.
