US authorities have arrested a California technology company owner accused of orchestrating almost US$300 million in sales of export-controlled Nvidia AI servers to China through Malaysia and Singapore, according to the US Justice Department.
Greg Lui, 38, also known as Yiu Kong Lui, of San Gabriel, was arrested on Thursday and charged with conspiracy to violate US export controls, outbound smuggling and conspiracy to commit money laundering. Prosecutors allege that Lui and his co-conspirators used false documents and complex transshipment arrangements to conceal China as the ultimate destination for restricted artificial intelligence technology.
John A. Eisenberg, assistant attorney general for national security, said the indictment described efforts to evade US export laws by disguising the intended users and destinations of the technology. “These chips are the product of American ingenuity,” Eisenberg said. “The National Security Division will continue to enforce our export-control laws to protect that advantage.”
The servers involved contained US-manufactured Nvidia A100 and H100 graphics processing units, advanced chips used for artificial intelligence computing. The Justice Department said the technology could contribute to the military capabilities of other countries. The Chinese purchaser identified in the indictment is an industrial company based in Hangzhou, a major Chinese technology centre.
Lui owns Earthmade Computer, based in the City of Industry, California. Prosecutors allege that he purchased hundreds of millions of dollars’ worth of high-end servers from US manufacturers and arranged for them to be transported to third countries before being re-exported to China without the necessary licences.
The indictment cites several shipments as evidence of the alleged scheme. In January 2024, Lui allegedly ordered 27 Nvidia H100 servers valued at about US$7.6 million. The equipment was shipped from Los Angeles County to Kuala Lumpur, where a Malaysian co-conspirator later told a government official that the servers had been transshipped to a Chinese purchaser.
In another case, 92 export-controlled servers were flown from San Francisco International Airport to Kuala Lumpur in June 2024 before being transported onwards to Hong Kong. Prosecutors said Earthmade received more than US$176 million from two Malaysia-based transshipment companies between January and October 2024.
According to the indictment, Lui helped broker almost US$300 million in sales of export-controlled Nvidia servers through Malaysian companies. The allegations place Malaysia and Singapore at the centre of concerns over the use of third countries to circumvent US restrictions on advanced computing technology.
Nvidia said it was cooperating with law enforcement. “This case shows yet again that smuggling is a losing proposition — legally, economically and technically,” a company spokesperson said. “We will continue to engage with law enforcement.”
The case comes as Washington tightens controls designed to restrict China’s access to high-end computing technology. Separate concerns have emerged over Chinese artificial intelligence companies obtaining remote access to restricted Nvidia chips installed in data centres in Southeast Asia. US export controls generally regulate the physical transfer of chips, creating a potential gap where the hardware remains outside China while Chinese companies can remotely access its computing capacity.
US lawmakers are also pursuing measures that would require tracking technology for advanced chips and strengthen oversight of exports, as authorities seek to prevent smuggling and diversion of AI servers to China.
The New York Post reported that federal agents had tracked Lui as he drove a Tesla Cybertruck from his San Gabriel home to Earthmade’s offices, where agents arrested him shortly after he arrived. Federal agents subsequently searched his home. Lui did not speak as he was taken away for processing, according to the newspaper.
Before entering the technology business, Lui was involved in the restaurant industry. The New York Post also reported on his residence and lifestyle, including a 4,300-square-foot, nine-bedroom mansion in San Gabriel.
If convicted on all charges, Lui faces statutory maximum penalties of 20 years in prison for conspiracy, 20 years for money laundering and 10 years for outbound smuggling.
