Federal authorities arrested Greg Lui, owner of Earthmade Computer Inc., accusing him of coordinating a scheme to export more than $300 million in U.S.‑made AI servers to China by routing shipments through countries including Malaysia and Singapore. Prosecutors allege Earthmade received over $176 million from Malaysia‑based firms in 2024 and cite a January shipment of 27 servers valued at about $7.6 million that was allegedly redirected to China. Lui faces charges including violations of export controls, smuggling and money laundering and could face up to 50 years in prison if convicted; the case remains under investigation and he is presumed innocent until proven guilty.
California CEO Arrested in Alleged $300M AI-Server Smuggling Scheme
Greg Lui, 38, a.k.a. "Yiu Kong Lui," of San Gabriel, is charged with smuggling to China more than $300 million worth of export-controlled high-end computer servers containing U.S.-manufactured graphics processing units.
Federal authorities arrested 38-year-old Greg Lui (also known as Yiu Kong Lui) after prosecutors said he orchestrated a large-scale operation to move more than $300 million worth of export‑controlled computer servers—equipped with advanced U.S.-made graphics processing units (GPUs)—to China by routing shipments through third countries.
Details of the Allegations
According to a federal indictment, Lui is the owner of Earthmade Computer Inc., a City of Industry, California, technology company founded in 2021 that marketed server procurement, infrastructure and data‑center services. Prosecutors allege Earthmade served as the central vehicle to acquire and route export‑restricted AI hardware overseas.
Authorities say the operation relied on transshipment: shipping equipment to intermediate countries with looser controls—such as Malaysia and Singapore—and then forwarding it to buyers in China. The Justice Department alleges Earthmade received more than $176 million from two Malaysia‑based firms between January and October 2024 as part of the scheme. One example in the indictment describes a January 2024 purchase of 27 servers valued at roughly $7.6 million that were shipped from Los Angeles to Kuala Lumpur and later forwarded to a China‑based buyer.
Prosecutors further allege that Lui and co‑conspirators provided U.S. manufacturers with false paperwork that concealed the equipment’s ultimate destination, an effort the government says was intended to evade U.S. export controls on advanced computing systems and semiconductors.
Charges, Investigation and Legal Status
- Federal charges include conspiracy to violate export‑control regulations, smuggling and conspiracy to commit money laundering.
- If convicted on all counts, Lui faces up to 50 years in prison, according to the indictment.
- The investigation involves the FBI, the Commerce Department’s Bureau of Industry and Security (BIS) and the Defense Criminal Investigative Service (DCIS).
Presumption of innocence: The allegations against Greg Lui are contained in an indictment; he has been charged but not convicted and is presumed innocent unless proven guilty in court.
Newsweek reported that it contacted Earthmade via email after regular business hours and that the federal docket did not identify Lui's legal counsel, according to Bloomberg reporting. The case comes amid stepped‑up U.S. efforts to restrict the export of advanced chips and AI‑related systems that officials say could be used for military, intelligence or surveillance purposes.
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