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Scan for outdated or missing drivers - takes under a minuteDriver Scan →Clear out junk files and repair common Windows errorsFree Scan →Fix the driver behind crashes, sound loss and screen glitchesFind Drivers →U.S. prosecutors allege that more than $300 million of export-controlled computer servers were routed to China through third countries. The October 1, 2026 indictment announcement does not name Nvidia or identify the servers’ GPUs or models, so the title’s Nvidia attribution is not independently established by the available primary source. The allegations are not a conviction.
What the October 2026 indictment alleges
The U.S. Department of Justice says Greg Lui, 38, also known as Yiu Kong Lui, of San Gabriel, California, was arrested on a three-count federal indictment returned September 29, 2026. He was expected to make an initial appearance and be arraigned on October 1. The announcement reports charges, not a finding of guilt.
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- Conspiracy to violate the Export Control Reform Act and Export Administration Regulations
- Outbound smuggling
- Conspiracy to commit money laundering
According to the indictment summary released by DOJ, Lui owned Earthmade Computer Inc., a technology company based in City of Industry, California. Prosecutors allege that Lui and co-conspirators used Earthmade from 2023 through 2024 to buy export-controlled equipment for China without the required U.S. Commerce Department licenses.
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DOJ alleges the equipment was shipped through countries including Malaysia and Singapore before being re-exported to China. Prosecutors also allege that false paperwork was supplied to U.S.-based manufacturers to misrepresent the equipment’s end users and destinations.
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The 27-server transaction
One example in the indictment summary concerns an order allegedly submitted by Lui in January 2024 for 27 servers costing approximately $7,614,000. The servers were shipped from Los Angeles to Kuala Lumpur. In March, a co-conspirator allegedly told a Malaysian government official that the 27 servers had been transshipped to a buyer in China.
Payments identified by DOJ
DOJ says Earthmade received more than $176 million from two Malaysia-based shipment companies between January and October 2024. Those figures are allegations described by prosecutors, not an independently audited accounting of the entire operation.
Were Nvidia servers and specific GPUs involved?
The October DOJ announcement describes GPUs made by companies specializing in “Super Intelligence” computing, but it does not name Nvidia, a server manufacturer, a GPU, or a server model. The available announcement therefore does not establish that the allegedly smuggled equipment was Nvidia hardware, nor does it identify H200, H100, or any other product.
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That distinction matters because a headline attribution is not the same as evidence in the indictment announcement. Further documentation would be needed to connect this case to a particular Nvidia product or customer.
What the charges could mean if proved
DOJ says that, if convicted of all charges, Lui could face maximum penalties of 20 years for the export-control conspiracy count, 20 years for the money-laundering conspiracy count, and 10 years for the smuggling count. These are statutory maximums, not a prediction of the sentence or an indication that the charges will result in conviction.
Bill Essayli, First Assistant U.S. Attorney for the Central District of California, said: “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.”
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How U.S. rules treated advanced chips in 2026
The case sits within changing U.S. controls on high-end computing exports, but the policy background does not identify the hardware in Lui’s case.
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BIS case-by-case licensing policy
On January 13, 2026, the Bureau of Industry and Security said it would review license applications for Nvidia H200, AMD MI325X, and similar chips for China on a case-by-case basis. BIS said applicants would have to show that:
- Exports would not reduce semiconductor production capacity available to U.S. customers.
- The Chinese purchaser had export-compliance procedures, including customer screening.
- The product had passed independent third-party testing in the United States.
BIS Under Secretary for Industry and Security Jeffrey Kessler said: “Export controls should evolve with changes in technology, while protecting national security. Permitting the sale of the H200 to China under controlled conditions will strengthen the American technology ecosystem.”
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NVIDIA’s July 2026 disclosure
In a filing for the period ended July 26, 2026, NVIDIA said the U.S. government had granted licenses for small amounts of H200 products to specific China-based customers. The company said Chinese restrictions limited sales, shipments under the program were less than 1% of Data Center revenue in its most recent quarter, and H200 shipments required U.S. inspection before shipment and carried a 25% U.S. import tariff. NVIDIA also said export restrictions were shifting and expanding. These are company disclosures, not an independent audit and not proof that H200 products were involved in the Lui indictment.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Do not confuse this case with the March 2026 server case
DOJ announced a separate case on March 19, 2026 involving three different defendants and a different alleged diversion scheme. Keeping the matters separate is essential:
| Feature | October 2026 Lui case | March 2026 case |
|---|---|---|
| Defendants | Greg Lui and alleged co-conspirators | Three different defendants |
| Alleged equipment value | More than $300 million in export-controlled servers | Company allegedly purchased approximately $2.5 billion of servers |
| Alleged diversion | Routing through Malaysia, Singapore and onward to China | At least approximately $510 million allegedly diverted to China between late April and mid-May 2025 |
| Other allegations | False end-user and destination paperwork | False records, transshipment and staged dummy servers |
The March figures and allegations should not be added to the October indictment’s $300 million figure.
Quick Recap
What is established—and what remains unknown
- Established by the DOJ announcement: an indictment, Lui’s arrest, the three charges, the alleged $300 million-plus value, the alleged Malaysia and Singapore routing, and the 27-server example.
- Not established by that announcement: Nvidia’s involvement, the GPU or server models, the identities of all alleged co-conspirators, or a conviction.
- Policy context only: certain H200 and similar chip exports could receive case-by-case review under conditions announced by BIS; that policy does not identify the equipment in this prosecution.
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