California tech owner arrested for $300M China chip smuggling scheme

export controls AI chip smuggling Nvidia GPUs national security Earthmade Computer

Greg Lui, the 38-year-old owner of California-based Earthmade Computer Inc., has been arrested on federal charges for allegedly smuggling over $300 million worth of export-controlled computer servers to China.

According to the U.S. Department of Justice, the scheme involved using high-end graphics processing units (GPUs), including Nvidia models, which are subject to U.S. restrictions due to their potential military and artificial intelligence applications. Between 2023 and 2024, Lui and his co-conspirators allegedly used false paperwork to misrepresent the final destination of the hardware. To evade export controls, the servers were reportedly routed through Malaysia and Singapore before being re-exported to China.

In one specific instance cited in the indictment, Lui allegedly ordered 27 servers containing Nvidia H100 GPUs for approximately $7.6 million in January 2024, which were then shipped to Kuala Lumpur.

Lui faces a three-count federal indictment including conspiracy to violate the Export Control Reform Act and Export Administration Regulations, outbound smuggling, and conspiracy to commit money laundering. If convicted on all counts, he could face a maximum sentence of up to 50 years in prison.

Entities

China · Earthmade Computer Inc. · Greg Lui · Nvidia · U.S. Department of Commerce · U.S. Department of Justice

Claims

What the coverage asserts, and how many sources carry each claim.

[● 10 SOURCES] Greg Lui is the owner of Earthmade Computer Inc. bhaskarlive.in · srnnews.com · www.businesstimes.com.sg · wltreport.com · 100percentfedup.com · +5 more
[● 10 SOURCES] The US Justice Department charged Greg Lui with smuggling over $300 million in export-controlled servers to China. bhaskarlive.in · srnnews.com · www.businesstimes.com.sg · wltreport.com · 100percentfedup.com · +5 more
[● 2 SOURCES] Lui could face up to 50 years in prison if convicted on all counts. technews.tw · fakti.bg
[○ 1 SOURCE] Earthmade received over $176 million from two Malaysia-based companies in 2024. mynewsla.com
[● 9 SOURCES] The scheme involved using false paperwork to hide the final destination of the hardware. bhaskarlive.in · www.businesstimes.com.sg · wltreport.com · 100percentfedup.com · fakti.bg · +4 more
[● 10 SOURCES] Lui faces charges of conspiracy to violate export control laws, outbound smuggling, and money laundering conspiracy. bhaskarlive.in · srnnews.com · www.businesstimes.com.sg · wltreport.com · 100percentfedup.com · +5 more
[● 10 SOURCES] Lui and co-conspirators allegedly used Malaysia and Singapore as transit points to evade US export controls. bhaskarlive.in · srnnews.com · www.businesstimes.com.sg · wltreport.com · 100percentfedup.com · +5 more
[● 3 SOURCES] In January 2024, Lui allegedly ordered 27 servers containing Nvidia H100 GPUs for approximately $7.6 million. fakti.bg · interestingengineering.com · www.stheadline.com