Tech CEO Arrested for Allegedly Smuggling $300 Million in High-End GPU Servers to China
U.S. authorities have arrested Greg Lui, owner of Earthmade Computer Inc., for allegedly orchestrating a scheme to smuggle over $300 million in restricted GPU servers to China, bypassing export controls.
Federal authorities have arrested Greg Lui, the owner of California-based Earthmade Computer Inc., on charges of orchestrating a sophisticated scheme to smuggle more than $300 million worth of restricted GPU servers to China. The alleged operation, which spanned from 2023 to 2024, involved falsifying customer records and utilizing third countries like Malaysia and Singapore as transshipment points to obscure the servers' ultimate destination.
Lui, 38, also known as Yiu Kong Lui, is accused of knowingly supplying advanced computing equipment, including servers equipped with U.S.-made graphics processing units (GPUs), to Chinese buyers without obtaining the necessary licenses from the U.S. Commerce Department. Prosecutors highlighted that these high-end GPUs are critical components for "Super Intelligence" applications, raising national security concerns.
The indictment, unsealed on October 1, 2026, charges Lui with conspiracy to violate export control laws, outbound smuggling, and conspiracy to commit money laundering. The scheme allegedly involved misrepresenting the intended end-users and destinations to U.S. manufacturers, while using intermediary companies in Southeast Asia to reroute the shipments to China. Prosecutors also claim that dummy servers were used in an attempt to mislead inspectors during the export process.
Evidence presented by the Justice Department indicates that Earthmade Computer Inc. received over $176 million from two Malaysian shipping companies between January and October 2024, suggesting substantial financial transactions tied to the alleged smuggling activities. One specific transaction detailed involved the shipment of 70 servers, valued at approximately $7.6 million, which were ultimately forwarded to China despite explicit warnings on packing lists about U.S. export restrictions.
Assistant Attorney General John A. Eisenberg emphasized that the core of the violation lies in the hidden Chinese destination and the lack of required export approvals, rather than the mere use of overseas shipping hubs. The alleged deception aimed to circumvent U.S. regulations designed to prevent sensitive technology from falling into the hands of entities that could pose a national security risk.
This case underscores the ongoing efforts by U.S. authorities to police the export of advanced technologies, particularly those with potential military applications. The Commerce Department's export enforcement office, the Defense Criminal Investigative Service, and the FBI have been instrumental in the investigation.
If convicted, Lui faces significant prison time, with each conspiracy charge carrying a maximum of 20 years and the smuggling charge up to 10 years. The arrest serves as a stark reminder of the complexities and risks involved in the global technology supply chain and the critical importance of adhering to export control regulations.