California Tech Company Executive Arrested for Illegal Nvidia Server Shipment to China

Serdar HocamAuthor & Editor

California company owner Greg Lui has been arrested for smuggling 300 million dollars worth of Nvidia artificial intelligence servers to China via Malaysia and Singapore, violating US export restrictions.

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California tech CEO arrested, faces up to 20 years in prison for smuggling $300 million in Nvidia AI servers to China — federal prosecutors say chips were routed through Malaysia and Singapore using false paperwork

A tech company executive in the US has been detained on allegations of smuggling over 300 million dollars worth of restricted Nvidia chips and servers to China using falsified documents in violation of the country's export controls. If convicted, he could face up to 20 years in prison.

Charges of Violating Export Controls

According to a statement by the United States Department of Justice, Greg Lui, owner of the California-based Earthmade Computer Inc., established a covert network to deliver restricted technologies to China.

Route Through Malaysia and Singapore

The investigation revealed that the defendant and his accomplices shipped high-performance servers first to Malaysia and Singapore, where restrictions were not in place, between 2023 and 2024.

Falsified Documents and Misleading Declarations

Authorities stated that although the final destination of the shipments included buyers such as the Chinese government, this was concealed using forged documents, making them appear as locations not requiring an export license.

Legal Process and Potential Penalties

Federal prosecutors emphasized that the defendant intentionally violated national security regulations, and it is stated that long prison sentences could be handed down as a result of the case.