Konnech CEO Eugene Yu, 51, was arrested Tuesday in Michigan after Los Angeles County prosecutors alleged he stored the personal information of hundreds of county election workers on servers in China.
The county awarded Yu’s firm, Konnech, a contract in 2020 to store information pertaining to the employee payroll and scheduling data on the guarantee that he would store all information within the U.S., according to a statement shared by LA County. Michigan is expected to extradite him to Los Angeles in the coming days, according to the Los Angeles Times.
“Konnech allegedly violated its contract by storing critical information that the workers provided on servers in China,” Los Angeles district attorney George Gascon said, per the LA Times. “We intend to hold all those responsible for this breach accountable.” While Gascon noted that none of the information appeared to have been sold, any data stored in China can be provided to Chinese intelligence and security agencies at their demand.