The U.S. Department of the Treasury announced that it imposed the first civil penalty under the Outbound Investment Security Program in July 2026, fining Amidi LLC USD 200,000 for failing to notify Treasury of an investment by its controlled foreign entity in a Chinese embodied artificial intelligence company. Amidi’s subsidiary, a Chinese fund, invested about USD 92,478 in Shanghai Qiongche Intelligent Technology Company Limited, known as Noematrix, in April 2025. The program requires U.S. persons to report covered transactions by controlled foreign entities and to take reasonable steps to prevent those entities from undertaking prohibited transactions. It applies to specified investments involving entities in or connected to mainland China, Hong Kong and Macau that conduct certain activities in quantum computing, artificial intelligence and semiconductors. Treasury identified the transaction through its compliance and market monitoring.
U.S. Department of the Treasury announces first outbound investment penalty of USD 200,000
The U.S. Department of the Treasury announced its first civil penalty under the Outbound Investment Security Program, fining Amidi LLC USD 200,000. Amidi failed to notify Treasury of its controlled Chinese fund’s approximately USD 92,478 investment in Chinese embodied artificial intelligence company Noematrix.