In a Manhattan federal courtroom on Thursday, Ting-Wei 'Willy' Sun confessed to his role in a scheme to redirect Nvidia-powered servers toward China, striking a deal with prosecutors. According to Bloomberg's reporting, Sun—described by US authorities as a 'fixer'—entered his guilty plea as part of a cooperation agreement.
The $2.5 billion operation
Federal prosecutors allege that Sun and his associates routed servers containing Nvidia chips through a Southeast Asian intermediary before ultimately delivering them to Chinese end-users. These particular chips fall under US export restrictions that prohibit their sale to China.
The scheme involved approximately $2.5bn in restricted American AI technology, according to charges filed in March. Sun admitted guilt on four separate counts, including conspiracy to circumvent export control regulations.
To evade detection, prosecutors say the group engaged in document falsification and created counterfeit server units. The indictment details how they used unconventional methods—including a hair dryer—to affix serial numbers in their attempt to deceive auditors.
Sun faces sentencing in September 2027. His legal representative declined to provide any statement to Bloomberg regarding the case.
Co-founder maintains innocence
Yih-Shyan 'Wally' Liaw, Super Micro's co-founder who was also charged in March, has entered a not guilty plea. He has since stepped down from the company's board.
A third defendant, Ruei-Tsang 'Steven' Chang, a former sales manager based in Taiwan, has yet to make a court appearance.
Super Micro itself is not facing charges. The company stated in August that its current leadership had no knowledge of the illegal activity and that it continues to cooperate with law enforcement investigations.
Such enforcement actions appear to be accelerating. The previous week saw US prosecutors bring charges against a California resident accused of exporting $300mn worth of AI servers to China.
Source: The Next Web
