Greg Lui, CEO of Earthmade Computer, was arrested for allegedly smuggling over $300 million worth of Nvidia A100 and H100 GPUs into China. The scheme, which operated from October 2023 to August 2026, involved routing shipments through Malaysia, Singapore, and Hong Kong using fraudulent documentation and shell entities.
The Department of Justice alleges that Lui used false paperwork to mask server shipments. In one instance, he allegedly submitted a purchase order for 27 servers valued at approximately $7,614,000, while a co-conspirator informed a Malaysian official that the hardware was destined for China. Another shipment of 92 servers was routed through Singapore and Hong Kong to a firm in Hangzhou.
Lui allegedly received more than $176 million from the operation in 2024. Evidence includes bank records from Bank of America and JP Morgan, as well as emails detailing the use of a fake buyer identity. Lui faces charges of conspiracy to violate export laws, smuggling, and money laundering, with potential prison sentences of up to 20 years.
Nvidia maintains that less than 0.5 percent of its products have been diverted to China. Despite scrutiny regarding compliance gaps in Southeast Asia, the company continues to work with entities like Megaspeed. Nvidia argues that it fulfills legal requirements and that its servers serve as financeable assets for startups in friendly nations.
