The Justice Department announced Thursday that it had arrested Greg Lui, 38, a California resident also known as Yiu Kong Lui, on suspicion of illegally exporting computer servers valued at more than $300 million to China. According to prosecutors, Lui operated through his company, Earthmade Computer, to circumvent mandatory export controls imposed by the US Commerce Department. The alleged trafficking operation spanned from 2023 through 2024.
Routing through intermediaries
Court documents allege that Lui directed shipments of GPU servers first to Malaysia and Singapore—jurisdictions where such exports do not require licensing—before they were subsequently forwarded to their ultimate destination in China. Prosecutors contend that Lui employed falsified documentation to conceal the servers' true endpoint. The equipment contained US-manufactured graphics processors designed for artificial intelligence development, which the Justice Department referred to using the Trump administration's terminology of "super intelligence."
Bill Essayli, the US attorney for the Central District of California, stated: "We will aggressively prosecute those who put our national security at risk for profit." Lui faces three separate charges encompassing smuggling and money laundering conspiracy. A conviction could result in up to 50 years of imprisonment, though an indictment represents only an allegation and Lui maintains the presumption of innocence.
Part of broader enforcement efforts
The United States has maintained longstanding restrictions preventing China from acquiring advanced AI chips, particularly those manufactured by Nvidia. The Justice Department declined to identify the specific chipmaker involved in this case. Illegal chip trafficking has emerged as a significant concern for both semiconductor manufacturers and government officials globally. Taiwan has separately brought charges against an Nvidia manager in connection with chips that were shipped to China.
Source: The Next Web
