US Arrests Tech Owner for Smuggling $300M in GPU Servers to China

Key Takeaways

• Greg Lui, owner of Earthmade Computer Inc., was arrested for allegedly orchestrating a $300 million GPU server smuggling operation to China.
• The scheme involved falsifying customer records, routing shipments through Malaysia and Singapore, and concealing the ultimate Chinese destination of high-end servers.
• Lui faces charges including conspiracy to violate the Export Control Reform Act, outbound smuggling, and conspiracy to commit money laundering.
• The case highlights U.S. national security concerns over the export of advanced computing technology, particularly GPUs used in AI and military applications.

U.S. authorities have apprehended Greg Lui, the proprietor of California-based technology firm Earthmade Computer Inc., on October 1, 2026. Lui stands accused of orchestrating a sophisticated scheme to illicitly export over $300 million worth of restricted GPU servers to China. The indictment details allegations of fabricated customer documentation, the use of intermediary countries for shipping, and deliberate efforts to obscure the true final destination of the high-value equipment.

Lui, 38, also known as Yiu Kong Lui, resides in San Gabriel and is scheduled for arraignment on October 2 in federal court in downtown Los Angeles. A federal grand jury formally issued the indictment on September 29, as confirmed by the Justice Department.

The charges levied against Lui encompass conspiracy to violate the Export Control Reform Act and Export Administration Regulations, outbound smuggling, and conspiracy to commit money laundering. Prosecutors contend that Lui knowingly facilitated the transfer of restricted computing hardware to Chinese entities without obtaining the mandatory licenses from the Commerce Department.

Allegations of a Sophisticated Smuggling Operation

Concealing True Destinations and Recipients

Between 2023 and 2024, Lui and his alleged co-conspirators reportedly utilized Earthmade Computer Inc., located in the City of Industry, to procure high-performance servers equipped with U.S.-manufactured graphics processing units. These chips, according to the Justice Department, are critical components commonly employed in “Super Intelligence” applications.

Instead of accurately declaring China as the ultimate recipient, the group allegedly misrepresented to U.S. manufacturers that the servers were destined for approved customers in other locations. Freight forwarders subsequently shipped the equipment to Malaysia and Singapore, from where it was then forwarded to China.

The core of the alleged violation lies in the concealed Chinese destination and the absence of required export approvals, rather than simply the utilization of international shipping hubs. Prosecutors assert that the submitted paperwork identified customers and destinations that, on paper, did not necessitate licenses for the transactions described.

Misleading Tactics and Financial Transactions

Assistant Attorney General John A. Eisenberg also indicated that the alleged operation involved the staging of “dummy servers” to deceive inspectors. However, the public announcement did not elaborate on how these decoys were employed or identify the specific GPU manufacturers or chip models implicated in the scheme.

Investigators state that Earthmade received over $176 million from two Malaysian shipping companies between January and October 2024. This figure represents payments cited within the alleged scheme, not the total estimated value of the servers prosecutors claim were smuggled.

A specific transaction provides insight into the alleged illicit route. In January 2024, Lui reportedly corresponded via email with a partner regarding a Malaysian company seeking 70 servers outfitted with restricted GPUs. An attached compliance form explicitly acknowledged U.S. restrictions on the sale or onward transfer of such servers.

Later that month, Lui placed an order for 27 servers, valued at approximately $7.614 million. This equipment was shipped from Los Angeles to Kuala Lumpur. Its accompanying packing list clearly stipulated that the GPU servers could not be sent to China without a proper license.

By March 2024, an alleged partner emailed a Malaysian government official, confirming that these 27 servers had indeed been forwarded to a buyer in China, according to prosecutors.

National Security Implications

U.S. officials emphasize that advanced GPUs possess capabilities that can bolster foreign military programs, making stringent control over their end-users a significant national security imperative. This case parallels other incidents involving sensitive computing technology and China, such as the earlier conviction of former Google engineer Linwei Ding for the theft of AI trade secrets.

For those monitoring technology supply chains, these allegations underscore the critical importance of accurate shipment records and declared end-users in export control investigations.

The Commerce Department’s export enforcement office, the Defense Criminal Investigative Service, and the FBI are jointly investigating Lui’s case. Each conspiracy charge carries a potential maximum sentence of 20 years in prison, while the smuggling charge carries a maximum of 10 years.

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