A California resident has been arrested after U.S. prosecutors accused him of helping arrange the shipment of more than $300 million worth of restricted computer servers to China without the necessary export authorization.
Federal authorities identified the defendant as Greg Lui, 38, of San Gabriel. He was arrested on October 1 after prosecutors unsealed an indictment in California. Lui is accused of using his technology company, Earthmade Computer Inc., to acquire advanced computer servers containing U.S.-made graphics processing units, or GPUs, and then arrange for the equipment to reach China.
The case involves powerful computing hardware, including Nvidia A100 and H100 GPUs. Such processors are used in artificial intelligence and high-performance computing, and certain exports of advanced computing equipment to China are subject to U.S. government restrictions.
According to the indictment, the alleged operation involved sending the equipment first to other countries before it was ultimately transferred to China. Prosecutors say Malaysia and Singapore were among the destinations used in the shipments.
Investigators allege that export documents identified the third countries as the authorized destinations rather than China. After the equipment arrived there, prosecutors claim it was subsequently moved onward to Chinese buyers.
The indictment describes an example involving 27 servers containing controlled GPUs. Prosecutors allege that Lui placed an order valued at approximately $7.6 million in January 2024. The servers were reportedly shipped from the Los Angeles area to Kuala Lumpur, Malaysia.
Authorities further allege that a co-conspirator later acknowledged to a Malaysian official that the equipment had been transferred to a buyer in China. Prosecutors say the example illustrates how the alleged shipments were routed through intermediary locations before reaching their final destination.
Financial transactions also form part of the government’s allegations. According to prosecutors, Earthmade received more than $176 million from two Malaysia-based shipping companies between January and October 2024. The indictment claims that the transactions were connected to the wider server-export operation, which prosecutors estimate involved nearly $300 million in restricted equipment.
The allegations come as the United States continues enforcing controls on advanced computing technologies destined for China. U.S. authorities have placed restrictions on certain high-performance chips and computing systems because of concerns about their potential applications in advanced artificial intelligence and other strategically sensitive areas.
Federal agencies involved in the investigation include the Department of Commerce’s Bureau of Industry and Security, the Defense Criminal Investigative Service and the FBI. Prosecutors are also pursuing the forfeiture of property that they allege is connected to the case.
Lui faces three federal charges. They include conspiracy to violate the Export Control Reform Act and related regulations, outbound smuggling and conspiracy to commit money laundering.
The potential penalties are substantial. According to the Justice Department, the export-control conspiracy carries a statutory maximum sentence of 20 years, while the smuggling charge carries a maximum of 10 years. The money-laundering conspiracy also carries a statutory maximum sentence of 20 years.
The case nevertheless remains at the allegation stage. Federal prosecutors have stressed that an indictment does not establish guilt, and Lui is presumed innocent unless the government proves the charges beyond a reasonable doubt.
The investigation highlights the difficulties involved in monitoring international technology supply chains, particularly when restricted equipment can potentially be routed through multiple countries before reaching its final destination. The case is also part of a broader U.S. effort to enforce export controls involving advanced computing hardware and prevent unauthorized transfers of sensitive technology.
As the legal proceedings continue, the allegations against Lui will be tested in federal court, where prosecutors will be required to establish the charges through evidence.
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