{"slug": "earthmade-ceo-greg-lui-arrested-over-alleged-300m-server-exports-to-china", "title": "Earthmade CEO Greg Lui arrested over alleged $300M server exports to China", "summary": "Greg Lui, owner of California server provider Earthmade Computer, was arrested on October 1 after a federal grand jury returned a three-count indictment on September 29 alleging he helped route more than $300 million in export-controlled computer servers containing U.S.-manufactured GPUs to China through Malaysia and Singapore from 2023 through 2024. The Justice Department alleges Lui used false paperwork to conceal the equipment's destination and that Earthmade received more than $176 million from two Malaysia-based shipment companies between January and October 2024, with one January 2024 transaction covering 27 servers at about $7.614 million shipped from Los Angeles to Kuala Lumpur. Lui faces statutory maximums totaling 50 years if convicted on all counts and is presumed innocent.", "body_md": "# Earthmade CEO Greg Lui arrested over alleged $300M server exports to China\n\n**Prosecutors allege Earthmade routed servers through Malaysia and Singapore; Lui faces statutory maximums totaling 50 years if convicted on all counts.**\n\n        By [RuntimeWire Staff](https://runtimewire.com/author/runtimewire-staff)\n        · Published \n\nPrimary source: [U.S. Department of Justice](https://www.justice.gov/usao-cdca/pr/san-gabriel-man-arrested-federal-charges-alleging-he-smuggled-china-more-300-million)\n\n## Why it matters\n\nThe indictment describes how reseller paperwork and transshipment routes can affect whether controlled AI hardware reaches restricted buyers.\n\nGreg Lui, the owner of California server provider Earthmade Computer, was arrested on October 1st after federal prosecutors accused him of helping route more than $300 million in export-controlled computer servers to China through Malaysia and Singapore. The [Justice Department](https://www.justice.gov/usao-cdca/pr/san-gabriel-man-arrested-federal-charges-alleging-he-smuggled-china-more-300-million?ref=runtimewire) says the alleged exports took place from 2023 through 2024, using false paperwork to conceal the equipment's destination.\n\nProsecutors allege Lui used Earthmade to buy servers containing U.S.-manufactured GPUs and ship them to China without required Commerce Department [licenses](https://runtimewire.com/models/huggingface/saicr-licenses-1d04f0799bfb51c5). Lui is presumed innocent; the indictment is an allegation, not a finding of guilt.\n\nLui's career has moved from restaurant ownership into the infrastructure behind AI computing. His [LinkedIn profile](https://www.linkedin.com/in/greg-lui-b35429b1?ref=runtimewire) describes work in AI-integrated systems and hyperscale data-center solutions. Reporting that cites his profile says he previously worked in database colocation and co-founded Duo-Pot, a Sichuan hot-pot restaurant in Arcadia, before founding Earthmade. That path puts him on the commercial side of the AI boom: sourcing and supplying high-performance computing systems rather than designing chips or training models.\n\n### The route prosecutors describe\n\nA federal grand jury returned the three-count [indictment](https://www.justice.gov/usao-cdca/pr/san-gabriel-man-arrested-federal-charges-alleging-he-smuggled-china-more-300-million?ref=runtimewire) on September 29th. Prosecutors allege Lui and unidentified co-conspirators used Earthmade to purchase controlled servers, then sent them first to Malaysia and Singapore before arranging their re-export to China. They say paperwork supplied to U.S. manufacturers represented that the equipment would go to permitted end users and destinations that did not require export licenses.\n\nThe indictment's example transaction shows the alleged mechanics in detail. In January 2024, Lui allegedly submitted a purchase order for 27 servers at a price of about $7.614 million after discussing a Malaysian company's interest in buying 70. The shipment went from Los Angeles to Kuala Lumpur. In March, a co-conspirator allegedly told a Malaysian official that the 27 servers had been transshipped to a buyer in China.\n\nThe [Justice Department says](https://www.justice.gov/usao-cdca/pr/san-gabriel-man-arrested-federal-charges-alleging-he-smuggled-china-more-300-million?ref=runtimewire) Earthmade received more than $176 million from two Malaysia-based shipment companies between January and October 2024. That figure is money received, not a measure of Earthmade's revenue or profit, and prosecutors describe it as part of the alleged scheme. The indictment also alleges the use of staged \"dummy servers\" to mislead inspectors.\n\nThe DOJ's release describes servers with GPUs made by U.S. companies but does not name a chipmaker. [Tom's Hardware's report](https://www.tomshardware.com/tech-industry/artificial-intelligence/california-tech-ceo-arrested-faces-up-to-20-years-in-prison-for-smuggling-usd300-million-in-nvidia-ai-servers-to-china-federal-prosecutors-say-chips-were-routed-through-malaysia-and-singapore-using-false-paperwork?ref=runtimewire) identifies them as Nvidia-powered systems. Earthmade's [website](https://www.earthmade.io/?ref=runtimewire) presents the business as an AI hardware and server provider and lists Supermicro, 2CRSi and Dell as reseller relationships. The company site establishes its commercial role in the hardware market; it does not establish the allegations in the indictment.\n\n### Maximum penalties across the three counts\n\nLui faces one count of conspiracy to violate the Export Control Reform Act and Export Administration Regulations, one count of outbound smuggling, and one count of conspiracy to commit money laundering. The [Justice Department says](https://www.justice.gov/usao-cdca/pr/san-gabriel-man-arrested-federal-charges-alleging-he-smuggled-china-more-300-million?ref=runtimewire) the statutory maximum is 20 years for each conspiracy count and 10 years for smuggling. The combined statutory maximum is 50 years if convicted on all counts, although that is not a prediction of a sentence.\n\n[Tom's Hardware reported](https://www.tomshardware.com/tech-industry/artificial-intelligence/california-tech-ceo-arrested-faces-up-to-20-years-in-prison-for-smuggling-usd300-million-in-nvidia-ai-servers-to-china-federal-prosecutors-say-chips-were-routed-through-malaysia-and-singapore-using-false-paperwork?ref=runtimewire) that Lui made his initial appearance and was arraigned on October 1st. The DOJ's [October 1st release](https://www.justice.gov/usao-cdca/pr/san-gabriel-man-arrested-federal-charges-alleging-he-smuggled-china-more-300-million?ref=runtimewire) had said he was expected to appear the following day.\n\nThe indictment describes an alleged effort to obscure the end user across multiple steps in a supply chain: purchase from U.S. manufacturers, export to intermediate destinations, then onward shipment to China. A reseller's paperwork and routing decisions can determine whether advanced computing equipment reaches an authorized customer or a restricted destination.\n\nThe FBI, the Commerce Department's Bureau of Industry and Security, and the Defense Criminal Investigative Service are investigating. The government identifies Lui and unnamed co-conspirators in the alleged scheme; it does not name Earthmade as a defendant in the three-count indictment. The charges against Lui remain unproven.", "url": "https://wpnews.pro/news/earthmade-ceo-greg-lui-arrested-over-alleged-300m-server-exports-to-china", "canonical_source": "https://runtimewire.com/article/greg-lui-earthmade-alleged-server-exports-china", "published_at": "2026-10-02 17:57:33+00:00", "updated_at": "2026-10-02 18:09:32.785426+00:00", "lang": "en", "topics": ["ai-chips", "ai-infrastructure", "ai-policy"], "entities": ["Greg Lui", "Earthmade Computer", "U.S. Department of Justice", "Malaysia", "Singapore", "China", "Duo-Pot", "Tom's Hardware"], "also_reported_by": [], "alternates": {"html": "https://wpnews.pro/news/earthmade-ceo-greg-lui-arrested-over-alleged-300m-server-exports-to-china", "markdown": "https://wpnews.pro/news/earthmade-ceo-greg-lui-arrested-over-alleged-300m-server-exports-to-china.md", "text": "https://wpnews.pro/news/earthmade-ceo-greg-lui-arrested-over-alleged-300m-server-exports-to-china.txt", "jsonld": "https://wpnews.pro/news/earthmade-ceo-greg-lui-arrested-over-alleged-300m-server-exports-to-china.jsonld"}}