Illegal Server Smuggling Scheme
California Man Charged With Smuggling $300 Million in Nvidia Servers to China
Anonymous
Key Points
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Prosecutors allege Earthmade submitted false end-user paperwork to U.S. hardware manufacturers and staged “dummy servers” to mislead federal inspectors.
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One alleged shipment involved 27 servers purchased for about $7.6 million in January 2024 and sent from Los Angeles to Kuala Lumpur. Prosecutors say a co-conspirator later told a Malaysian government official that the servers had been forwarded to a Chinese buyer.
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Earthmade was described as an authorized distributor of Super Micro Computer solutions specializing in high-performance Nvidia GPU infrastructure.
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At the time of Article 1’s reporting, court records showed Lui had not yet entered a guilty or not-guilty plea, and it was unclear whether he had legal representation.
Federal authorities have charged California businessman Greg Lui with orchestrating a $300 million scheme to smuggle advanced Nvidia GPU servers to China. PCMag reported that Lui, who owned Earthmade Computer, allegedly used false paperwork and routed shipments through Malaysia and Singapore to bypass U.S. export restrictions. Prosecutors say the operation ran from 2023 to 2024 and generated more than $176 million in payments from Malaysia-based freight forwarders.
Lui faces charges including conspiracy to violate export controls, smuggling, and money laundering. Yahoo News noted that if convicted, he could face up to 50 years in prison. Court records showed he had not yet entered a plea at the time of reporting.
How the Smuggling Scheme Operated
According to PCMag, Earthmade Computer submitted fake end-user paperwork to U.S. hardware manufacturers to conceal the servers' true destination. The company also allegedly created dummy servers to deceive federal inspectors conducting compliance checks. Prosecutors say this deception allowed Lui to purchase export-controlled equipment without obtaining required government licenses.
One example involved 27 high-end servers purchased for $7.6 million in January 2024. Gadget Review reported that Lui's operation shipped these servers from Los Angeles to Kuala Lumpur, Malaysia. A co-conspirator then allegedly told Malaysian officials the servers had been forwarded to a Chinese buyer, revealing the scheme's true intent.
Earthmade's Role as GPU Distributor
Earthmade Computer presented itself as an authorized distributor of Super Micro Computer solutions and specialized in high-performance Nvidia GPU infrastructure. Yahoo News reported that the company used this legitimate-sounding business model to gain credibility with manufacturers and gain access to advanced hardware. This cover enabled Lui to purchase servers that would otherwise face export scrutiny.
The Money Trail and Financial Investigation
Prosecutors traced more than $176 million flowing into Lui's operation from two Malaysia-based freight forwarders during the 20-month scheme. PCMag noted these payments suggest a highly organized criminal enterprise with international financial infrastructure. The large sums indicate this was not a small-scale operation but a major attempt to circumvent U.S. export controls on advanced technology.
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