US Arrests Man over Alleged Smuggling of US$300 Million Worth of Computer Servers to China
- On Thursday, authorities arrested San Gabriel resident Greg Lui for allegedly smuggling more than $300 million in export-controlled computer servers containing high-end graphics processing units to China, federal prosecutors announced.
- Using Earthmade Computer Inc., Lui and co-conspirators allegedly shipped restricted hardware through Malaysia and Singapore with false documentation to bypass U.S. export license requirements between 2023 and 2024.
- Court papers show Earthmade received more than $176 million from two Malaysia-based shipping companies during the scheme, including one transaction involving 27 servers valued at about $7.6 million in January 2024.
- Lui faces up to 20 years in federal prison for export-control conspiracy and money laundering, plus 10 years for smuggling if convicted; he is scheduled for arraignment Friday in Los Angeles federal court.
- First Assistant United States Attorney Bill Essayli said the case protects national security by keeping "Super Intelligence" technology from being used to strengthen "our adversaries military capabilities," citing China's potential military advantage.
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Greg Lui, 38, also known as "Yiu Kong Lui", allegedly used false documentation and shipments through third countries to smuggle computer servers subject to export control into China, the department noted in a statement issued on Thursday. The servers contained "U.S.-made graphical processing units (GPUs), commonly used for superintelligence" (SI), he added, using President Donald Trump's new name to refer to AI.
California businessman could face 50 years in prison for smuggling $300 million in AI technology to China.
Reformatorisch Dagblad
welingelichtekringen.nlU.S. authorities have arrested a man accused of smuggling computer servers worth more than 300 million dollars to China. The Department of Justice announced this.
A Californian businessman was arrested for smuggling more than 300 million AI technology into China, using false documents and indirect routes.The defendant's company sent servers to countries without restrictions and then redirected them to China, violating U.S. export controls.
Channel News Asia
PressNewsAgencyUS arrests man over alleged smuggling of US$300 million worth of computer servers to China
Greg Lui operated a technology company called Earthmade Computer, which he used to buy and send items to China without the licences required by the US Department of Commerce from 2023 to 2024, said the Department of Justice.
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