The US Treasury slapped Amidi, LLC with a $200,000 penalty for not reporting a stake of about $92,478 held by its Chinese fund in a Shanghai robotics AI firm.
Penalty runs more than twice the investment, first under rules screening American money into sensitive Chinese tech.
Amidi’s offshore fund backed Noematrix on April 19, 2025
Amidi is the parent of the Silicon Valley startup accelerator operating as the Plug and Play Tech Center. On April 19, 2025, its Chinese fund subsidiary invested about $92,478 in Shanghai Qiongche Intelligent Technology Company Limited, or Noematrix, the Treasury said.
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Amidi never submitted the required program notification.
The Treasury issued the penalty in July and announced it on Wednesday. It describes Noematrix as a Chinese “embodied artificial intelligence” company.
Noematrix is a private company that builds AI, robotics and embodied intelligence, the Treasury said. The deal was caught by the Treasury through its regular and ongoing compliance and market monitoring.
When deciding whether to bring a case, Treasury weighs the aggravating and mitigating factors set out in its enforcement guidance.
COINS will stretch Treasury’s outbound program to more countries and sectors
Penalty is first under the Outbound Investment Security Program, in force since January 2, 2025. The rules compel US investors to notify Washington and, in some cases, stay out altogether when money goes to Chinese companies working on AI, semiconductors or quantum computing.
Covered targets are based in or have a link to mainland China, Hong Kong or Macau.
A deal worth less than $100,000 was sufficient for a six-figure fine for a missed filing. It’s a procedural violation, not a prohibited transaction.
Rules also make a US parent answer for offshore entities. It must notify Treasury of any deal by a controlled foreign entity that would be notifiable for a US person and take reasonable steps to forestall prohibited deals.
“We will continue to ensure that investors comply with the requirements established under the program,” Treasury’s assistant secretary for investment security Christopher Pilkerton said.
The program was a product of restrictions by the Biden administration in January 2025 that banned some US investments in private Chinese companies developing quantum computing and advanced AI models, as reported by Cryptopolitan at the time. Congress has since moved to widen those powers, giving President Trump the authority to add to the list of restricted Chinese high-tech sectors.
The Comprehensive Outbound Investment National Security Act, or COINS, was passed by lawmakers on December 18, 2025. It will extend the program to more countries and technology sectors.
Beijing has demonstrated it will reach into deals once they are closed. As Cryptopolitan previously reported, Chinese regulators forced Meta to unwind its $2 billion acquisition of AI startup Manus.
The reversal was ordered on April 27, 2026 by China’s National Development and Reform Commission.
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