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U.S. authorities arrested Greg Lui, owner of California-based Earthmade Computer Inc., over allegations that he orchestrated the unlicensed export of more than $300 million in restricted U.S.-made GPU servers to China. A federal indictment returned September 29 alleges that, from 2023 through 2024, Lui and associates conspired to violate the Export Control Reform Act and Export Administration Regulations, committed outbound smuggling, and conspired to launder money.
Prosecutors allege Earthmade hid the Chinese end destination through false customer and destination records and routed shipments through Malaysia and Singapore. The company allegedly received more than $176 million from two Malaysian shipping firms in 2024 and used dummy servers to mislead inspectors. The Commerce Department’s export-enforcement office, Defense Criminal Investigative Service, and FBI are investigating the case.
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U.S. authorities arrested Lui, the owner of California-based Earthmade Computer Inc., over the alleged unlicensed smuggling of more than $300 million in restricted GPU servers to China.
A federal grand jury indicted Lui on charges including conspiracy to violate the Export Control Reform Act and Export Administration Regulations, outbound smuggling, and conspiracy to commit money laundering.
An alleged partner reportedly told a Malaysian government official that the 27 GPU servers had been forwarded to a buyer in China.
Earthmade allegedly received more than $176 million from two Malaysian shipping companies during 2024, according to investigators.
Later in January, Lui allegedly ordered 27 GPU servers valued at approximately $7.614 million. The servers subsequently traveled from Los Angeles to Kuala Lumpur, and their packing list warned that they could not be sent to China without a license.
Lui allegedly communicated with a partner about a Malaysian company seeking 70 servers containing restricted GPUs. An attached compliance form acknowledged U.S. restrictions on selling or forwarding the servers.
Prosecutors allege that Greg Lui and Earthmade Computer Inc. acquired high-end U.S.-made GPU servers and began a scheme to supply restricted computing equipment to Chinese buyers without required Commerce Department licenses. The alleged operation used false customer and destination records and routing through Malaysia and Singapore to conceal the Chinese end users.
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US federal authorities have charged four individuals—Hon Ning Ho, Brian Curtis Raymond, Cham Li, and Jing Chen—with conspiring to illegally export restricted Nvidia AI chips and supercomputers to China. The indictment alleges that the group used shell companies, falsified invoices, and covert shipping routes through Malaysia and Thailand to bypass US export controls, which have been in place since October 2022 to prevent advanced AI hardware from reaching China. Prosecutors claim the operation involved at least four export attempts, two of which succeeded, resulting in the shipment of approximately 400 Nvidia A100 GPUs to China, while two other attempts involving HPE supercomputers with Nvidia H100 accelerators and 50 Nvidia H200 GPUs were disrupted by law enforcement. The US government asserts that these export controls are critical to limiting China's access to advanced AI technology, which could be used for military modernization and surveillance. The indictment highlights the use of a Florida-based sham real estate company, Janford Realtor LLC, as a front for the purchases, and details how the defendants allegedly doctored customs paperwork to facilitate the smuggling. The case is part of a broader crackdown on efforts to circumvent US technology restrictions, as authorities seek to prevent the transfer of high-performance computing hardware to Chinese entities.
Jun 29, 2026
U.S. prosecutors charged three people tied to Super Micro, including co-founder Yih-Shyan "Wally" Liaw, in an alleged scheme to divert Nvidia-powered AI servers to China in violation of U.S. export controls. Authorities said the group used a Southeast Asian front company, falsified shipping paperwork, and thousands of dummy server shells to conceal the movement of restricted hardware, with one method allegedly involving a hairdryer to transfer serial numbers from legitimate systems to decoy units. The Justice Department said the operation generated about **$2.5 billion** in sales since 2024; Liaw and Ting-Wei "Willy" Sun were arrested, while Ruei-Tsang "Steven" Chang remains a fugitive. Super Micro said it was **not named as a defendant**, placed Liaw and Chang on administrative leave, and cut ties with the contractor involved, while Nvidia said it supports strict export-control compliance and does not back unlawfully diverted systems. The allegations focus on misuse of Super Micro’s server supply chain, widely used to house Nvidia GPUs in data centers, and the market reacted sharply: Super Micro shares fell **25.3%** in premarket trading, wiping out roughly **$4.7 billion** in market value. The defendants face federal felony charges that could bring prison terms, fines, asset forfeiture, and bans on working in export-controlled industries.
Jul 2, 2026
Taiwanese prosecutors indicted nine people over an alleged scheme to illegally move Nvidia **B300** GPU servers to China by exploiting Supermicro’s Taiwan sales channel, falsifying end-user information, and routing shipments through intermediaries in **Indonesia, Japan, and Hong Kong**. Investigators said Flying Tiger Tech posed as the end user for a **130-unit** order placed through Albatron Technology, while colocation arrangements with Chief Telecom were used to help the deal pass inspection even though the site reportedly lacked the capacity to host the hardware. Prosecutors allege the operation also relied on insider assistance tied to Nvidia Taiwan and Supermicro Taiwan. Authorities said **74 units** were transferred in early 2026, producing roughly **$21.21 million** in profit, before a later **56-unit** shipment was flagged over export-permit requirements. The case has drawn wider attention as an example of how AI server export controls can be bypassed through fraudulent paperwork and opaque intermediary firms, prompting increased scrutiny from US authorities and renewed debate over stricter compliance checks for cloud and hardware supply chains. Investigators also said they uncovered a separate fraud scheme involving Albatron’s general manager, a Supermicro manager, and another electronics company over installation work that was allegedly never performed.
Aug 24, 2026