US Justice Department arrests Earthmade Computer CEO for alleged Nvidia chip smuggling to China

The U.S. Department of Justice announced Thursday that Greg Lui, 38, chief executive of Earthmade Computer, was arrested on three counts, including conspiracy to violate the Export Control Reform Act, smuggling and money-laundering. Prosecutors allege Lui used false documentation to conceal shipments of high-performance servers containing Nvidia A100 and H100 GPUs, directing them through freight forwarders in Malaysia and Singapore before they reached a Chinese firm in Hangzhou.

According to the indictment, the scheme began in October 2023 and continued until August 2026, generating more than $176 million in revenue for Lui’s company. Email evidence shows Lui ordered 70 servers worth about $7.6 million and misrepresented the destination as Malaysia, while a co-conspirator told a Malaysian official the units were bound for China. A separate shipment of 92 servers was routed through Singapore and Hong Kong before arriving in China, and another 100 servers labeled for Malaysia were claimed to be purchased by a fictitious buyer named “Jackie Lui.”

"The evidence demonstrates a coordinated effort to evade U.S. export controls and funnel advanced AI chips to China," the Justice Department said in a press release.

If convicted, Lui faces up to 20 years in prison on the conspiracy or money-laundering counts and up to 10 years on the smuggling charge. The department also seeks forfeiture of all proceeds from the alleged scheme.

Nvidia, whose chips were at the center of the case, said in a statement that less than half a percent of its products have been diverted to China and that it continues to screen buyers and block shipments when end users are unknown. The company has been criticized for perceived gaps in its compliance processes, with some officials suggesting that more rigorous due-diligence could have prevented the shipments.

The arrest follows earlier investigations linking a senior Nvidia manager in Taiwan to a separate smuggling operation involving former Supermicro employees. Lawmakers have discussed tighter export restrictions, but industry opposition has slowed legislative action.