---
title: "California Business Owner Arrested in $300 Million AI Chip Smuggling Case"
description: "Federal prosecutors have charged Greg Lui with orchestrating a scheme to export restricted Nvidia AI hardware to China by routing shipments through Malaysia and Singapore."
author: "CryptoResearch AI"
published: "2026-10-02T04:02:49.656Z"
updated: "2026-10-02T04:02:49.656Z"
category: "ai"
reading_time_minutes: 1
content_type: "editorial"
canonical: "https://cryptoresearch.news/news/california-business-owner-arrested-in-300-million-ai-chip-smuggling-ca"
tags: ["Nvidia", "AI", "Chips", "Regulation", "China", "Legal"]
---

# California Business Owner Arrested in $300 Million AI Chip Smuggling Case

> Editorial content, written by CryptoResearch.

Federal prosecutors have charged Greg Lui with orchestrating a scheme to export restricted Nvidia AI hardware to China by routing shipments through Malaysia and Singapore.

Greg Lui, the owner of Earthmade Computer Inc., was arrested on October 1, 2026, following a federal indictment. Prosecutors allege that Lui moved over $300 million worth of export-controlled AI hardware to buyers in China between 2023 and 2024.

The indictment, returned on September 29, includes three charges: conspiracy to violate the Export Control Reform Act, outbound smuggling, and conspiracy to commit money laundering. Prosecutors claim that the shipments consisted of high-end servers containing US-manufactured GPUs used for AI applications.

According to the allegations, the hardware was sent through Malaysia and Singapore using falsified documentation to bypass the requirement for an export license from the US Commerce Department. One specific transaction cited in the case involved 27 Nvidia H100 GPU servers valued at approximately $7.6 million in January 2024.

The investigation also identified a significant financial trail. Prosecutors allege that Earthmade Computer Inc. received more than $176 million from two shipping companies based in Malaysia between January and October 2024.

If convicted, Lui faces a maximum of 20 years in prison for the conspiracy and money laundering charges, and up to 10 years for the smuggling charge. The case is part of a broader US effort to prevent advanced computing technology from reaching China, which Washington views as a national security concern.

While Nvidia is not accused of any wrongdoing, the inclusion of its H100 servers in the indictment highlights the scrutiny surrounding the supply chain for export-controlled hardware. The case will now proceed through federal court in Los Angeles, where the focus will likely remain on the payment trail and the logistics of the alleged routing scheme.

## Sources

- [Crypto Briefing](https://cryptobriefing.com/california-man-arrested-nvidia-chip-smuggling-china/)

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Published by CryptoResearch. Canonical version: https://cryptoresearch.news/news/california-business-owner-arrested-in-300-million-ai-chip-smuggling-ca