US arrests tech CEO accused of smuggling $300M in Nvidia chips into China
Nvidia’s chip-smuggling problem won’t go away as arrests continue.
Nvidia’s chip-smuggling problem won’t go away as arrests continue.
The short version
- The US has arrested another suspect accused of smuggling high-end computer servers containing export-controlled Nvidia chips into China.
- In a press release on Thursday, the Department of Justice accused 38-year-old Greg Lui of using false paperwork to mask shipments of servers worth more than $300 million that he allegedly knew were ultimately destined for China.
- Emails and bank records exposed the smuggling scheme, the DOJ alleged, which started in October 2023 and continued until August 2026.
What happened
One key piece of evidence is a 2024 email discussing an order for 70 servers with export-restricted GPUs that were fraudulently claimed as destined for Malaysia. After “Lui submitted a purchase order to a US manufacturer for 27 of these servers for approximately $7,614,000,” the DOJ alleged that a co-conspirator told a Malaysian government official that all 27 were shipped to China.
Why it matters
A similar shipment of 92 export-controlled servers was allegedly routed through Singapore to Malaysia, then Hong Kong.
Summary by Nerd News Network. Read the full article at Ars Technica via the links above and below.