A Chinese tech network has been exposed for attempting to recruit laid-off American officials through fake headhunting firms, raising concerns over a bold attempt to gather classified information from former U.S. personnel. The companies posed as legitimate recruiters with job offers for think tanks and academic institutions tied to China.
The four shell firms were found to be operating on the same IP address as Smiao Intelligence, a Chinese company that shut down its website during the investigation. According to the Foundation for Defense of Democracies, the scheme likely sought to identify and target Americans with prior access to government operations or emerging technologies.
🔔‼️A secret Network of Federal Employees Resists Trump Administration.
"Along side with this, new US intelligence also shows that the Chinese regime is attempting to recruit disgruntled US federal employees".
➡️ https://t.co/dnfDaZrggq pic.twitter.com/yM8DQsP5vW— The Knight News (@Knight981311) March 8, 2025
Senior analyst Max Lesser, who uncovered the network, warned that the effort reflects a common espionage model used by China — offering financial opportunities to vulnerable former officials in exchange for intelligence.
RiverMerge Strategies was one of the most prominent firms used in the operation. Its website claimed to specialize in geopolitical risk, but its listed addresses traced back to a hostel in Singapore and a registered agent service in Colorado. The company’s U.S. phone line had been deactivated, and its Chinese number belonged to a cybersecurity-linked IT firm.
Another company, Wavemax Innovation, placed an ad on Craigslist offering jobs specifically to recently dismissed federal workers. That listing, like others, has since been removed. No legitimate business activity has been found connected to Wavemax’s listed address.
Recruitment ads pushed by these fake firms were reported to have gained hundreds of applicants before being taken down. Experts say that once employed, individuals could be encouraged to reveal sensitive knowledge or refer others with access to confidential government systems.
A former federal prosecutor familiar with these tactics said foreign intelligence agencies often lure targets by preying on dissatisfaction or financial hardship. Many victims may not realize who they are working for until it’s too late.
The Chinese Embassy in Washington denied involvement and claimed to know nothing of the recruitment scheme. However, U.S. agencies continue to track similar influence operations believed to be originating from Beijing.
