Nvidia server smuggling case: California tech CEO arrested over alleged $300m China scheme

Greg Lui runs Earthmade Computer Inc. in City of Industry, California, and also goes by Yiu Kong Lui. Federal authorities have arrested him in a case alleging that he and other conspirators moved more than $300 million worth of Nvidia-equipped servers to customers in China between 2023 and 2024, according to a federal indictment.

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Prosecutors say the group used false paperwork and routed the servers through Malaysia and Singapore to cover up who the real end users were and where the machines were actually headed. Court filings also say some of the buyers were allegedly tied to the Chinese government.

The indictment includes charges such as conspiracy to violate U.S. export laws, smuggling goods out of the U.S., and conspiracy to launder money. One deal singled out in the filing involved 27 Nvidia H100 server systems worth about $7.6 million. If convicted, Greg Lui could face up to 20 years in prison.

If you follow Nvidia or tech export controls, this is a case to keep an eye on. For consumers, it’s another sign that top data-center GPUs are now strategic assets, wrapped up in trade policy, national security, and a growing gray market fueled by strong demand from China.

The federal indictment and related court filings are the documents to watch as U.S. authorities push harder on enforcement across the chip and server supply chain.

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