In short
- U.S. Department of Justice stated Earthmade Computer Inc. received more than $176 million from two Malaysia-based shipment companies from January 2024 to October 2024.
- U.S. Department of Justice said Lui submitted a purchase order for 27 servers for approximately $7,614,000 in January 2024.
What happened
The U.S. Department of Justice announced the arrest of Greg Lui, owner of Earthmade Computer Inc., on charges of smuggling more than $300 million worth of export-controlled computer servers containing U.S.-manufactured GPUs to China. The indictment alleges Lui used false paperwork and shipments through third countries to evade U.S. export control laws.
From 2023 to 2024, Lui and his co-conspirators purchased and shipped high-end servers to Malaysia and Singapore, then illegally re-exported them to China. Earthmade received more than $176 million from two Malaysia-based shipment companies, and a purchase order for 27 servers totaling approximately $7,614,000 was submitted in January 2024.
This defendant allegedly used false paperwork and shipments through third countries to smuggle more than $300 million in export-controlled computer servers to China. We will aggressively prosecute those who put our national security at risk for profit.
In numbers
- $300 million Value of smuggled computer servers
- $176 million Earthmade Computer Inc. received from Malaysia-based shipment companies
- $7,614,000 Purchase order for 27 servers in January 2024
What compliance teams should check
- Review export compliance forms and documentation for shipments involving Earthmade Computer Inc. and Malaysia-based shipment companies.
- Verify purchase orders and packing lists for export-controlled GPUs, specifically the January 2024 order for 27 servers totaling approximately $7,614,000.
- Monitor transactions and communications referencing the Export Control Reform Act and Export Administration Regulations, as cited in the indictment returned on Sept. 29.
Why it matters
This case highlights the risks of illegal diversion of export-controlled technology, especially high-end GPUs used for Super Intelligence applications, to countries subject to U.S. export restrictions. Compliance officers must ensure strict adherence to export control laws, verify end users and destinations, and detect false documentation or transshipment schemes. Failure to comply can result in significant legal penalties and jeopardize national security by enabling adversaries to access advanced U.S. technology.
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