{"slug": "california-man-arrested-over-alleged-300-million-nvidia-ai-chip-smuggling-scheme", "title": "California man arrested over alleged $300 million Nvidia AI chip smuggling scheme to China", "summary": "Federal prosecutors in Los Angeles arrested Greg Lui, 38, owner of Earthmade Computer Inc., on October 1, 2026, following a three-count indictment returned September 29 accusing him of moving more than $300 million worth of export-controlled Nvidia GPU servers to buyers in China. Prosecutors allege the scheme ran between 2023 and 2024, routing shipments through Malaysia and Singapore with falsified documentation, including a January 2024 order for 27 Nvidia H100 GPU servers worth approximately $7.6 million, and that Earthmade received more than $176 million from two Malaysia-based shipping companies between January and October 2024. Lui faces conspiracy to violate the Export Control Reform Act, outbound smuggling, and conspiracy to commit money laundering, carrying maximums of 20 years and 10 years in prison; he has not been convicted.", "body_md": "# California man arrested over alleged $300 million Nvidia AI chip smuggling scheme to China\n\nFederal prosecutors say Earthmade Computer owner Greg Lui routed export-controlled GPU servers through Malaysia and Singapore using falsified paperwork\n\nFederal prosecutors in Los Angeles have arrested a California business owner accused of moving more than $300 million worth of export-controlled AI hardware to buyers in China.\n\nGreg Lui, 38, also known as Yiu Kong Lui, was taken into custody on October 1, 2026. He owns Earthmade Computer Inc. His arrest followed a three-count federal indictment returned on September 29.\n\nThe case matters because it lands in the middle of a broader US push to keep advanced computing technology out of China. Washington treats that technology as a national security issue, not just a trade question.\n\n## What prosecutors allege\n\nLui faces three charges. They are conspiracy to violate the Export Control Reform Act, outbound smuggling, and conspiracy to commit money laundering.\n\nAccording to prosecutors, the alleged scheme ran between 2023 and 2024. The goods were high-end computer servers packed with US-manufactured GPUs, the processors used primarily for advanced AI applications.\n\nShipping those servers to China legally would have required an export license from the US Commerce Department. Prosecutors allege Lui never sought one.\n\nInstead, the indictment says shipments were routed through Malaysia and Singapore. Falsified documentation allegedly helped hide where the hardware was really headed.\n\n### AI, tech, and the markets they move—in one daily briefing.\n\nDaily. Free. Join 34,000+ readers across crypto, finance, and policy.\n\nOne specific transaction stands out in the allegations. In January 2024, there was an order for 27 [Nvidia](https://cryptobriefing.com/markets/nvidia/) H100 GPU servers worth approximately $7.6 million.\n\nProsecutors also point to the money trail. Earthmade Computer Inc. allegedly received more than $176 million from two Malaysia-based shipping companies between January and October 2024.\n\nIf convicted, Lui faces a maximum of 20 years in prison on the conspiracy and money laundering charges. The smuggling charge carries up to 10 years.\n\nAs with any indictment, these are allegations. Lui has not been convicted of anything.\n\n## A wider crackdown on chip diversion\n\nUS authorities have framed this case as one piece of a larger enforcement effort. The goal is to stop advanced computing technology from being diverted to China.\n\nThe Department of Justice and the FBI are involved in that broader operation. Day-to-day oversight of these exports sits primarily with the Commerce Department’s Bureau of Industry and Security.\n\n## What this means\n\nFor Nvidia and other chipmakers, cases like this one sharpen an uncomfortable reality. The company is not accused of wrongdoing here, but its H100 servers are named in the indictment as the kind of hardware allegedly diverted.\n\nThat puts pressure further down the supply chain. Resellers, server builders and logistics firms that handle export-controlled hardware may face closer questions about who their customers are and where shipments ultimately land.\n\nThe next phase will play out in federal court in Los Angeles. Key questions include how prosecutors trace the $176 million in payments, whether other parties are named, and what the case reveals about how the alleged routing worked.\n\n**Disclosure:** This article was edited by Diego Almada Lopez. For more information on how we create and review content, see our\n\n[Editorial Policy](https://cryptobriefing.com/editorial-policy/).", "url": "https://wpnews.pro/news/california-man-arrested-over-alleged-300-million-nvidia-ai-chip-smuggling-scheme", "canonical_source": "https://cryptobriefing.com/california-man-arrested-nvidia-chip-smuggling-china/", "published_at": "2026-10-02 03:14:01+00:00", "updated_at": "2026-10-02 03:16:40.188229+00:00", "lang": "en", "topics": ["ai-chips", "ai-policy", "ai-infrastructure"], "entities": ["Greg Lui", "Earthmade Computer Inc.", "Nvidia", "US Department of Justice", "FBI", "US Commerce Department", "Bureau of Industry and Security", "H100"], "also_reported_by": [], "alternates": {"html": "https://wpnews.pro/news/california-man-arrested-over-alleged-300-million-nvidia-ai-chip-smuggling-scheme", "markdown": "https://wpnews.pro/news/california-man-arrested-over-alleged-300-million-nvidia-ai-chip-smuggling-scheme.md", "text": "https://wpnews.pro/news/california-man-arrested-over-alleged-300-million-nvidia-ai-chip-smuggling-scheme.txt", "jsonld": "https://wpnews.pro/news/california-man-arrested-over-alleged-300-million-nvidia-ai-chip-smuggling-scheme.jsonld"}}