Tech CEO Arrested for Smuggling $300M in AI Chips to China
Federal agents arrest tech CEO Greg Lui over alleged smuggling of U.S. AI chips to China, violating export laws.
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Federal agents have arrested Greg Lui, the CEO of Earthmade Computer, for allegedly smuggling over $300 million in U.S. artificial intelligence (AI) chips to China. The 38-year-old tech executive, who also goes by Yiu Kong Lui, faces multiple charges related to the illegal export of sensitive AI technology, violating national security laws.
Smuggling Scheme and Charges
Lui, based in San Gabriel, California, is accused of orchestrating a smuggling scheme from 2023 to 2024, using his company to export AI graphics processors to Beijing. Federal authorities allege he bypassed U.S. export controls by routing shipments through countries such as Malaysia and Singapore before re-exporting them to China.
According to the indictment, Lui and his co-conspirators submitted fraudulent documentation to suppliers, including Nvidia Corp, falsely claiming that advanced technology was destined for countries without export license requirements. This scheme allowed them to circumvent U.S. national security and foreign policy controls.
Arrest and Property Search
Agents arrested Lui at his company’s office in San Gabriel, where he was reportedly handcuffed at gunpoint after arriving at work. Prior to his arrest, Lui lived in a newly renovated 4,300-square-foot home on Walnut Grove Avenue, which was recently searched by federal agents. The nine-bedroom, seven-bathroom property underwent major upgrades, including new stucco, windows, and a repaved driveway.
During the search, agents filmed the interior and removed evidence from the scene. The property was linked to the smuggling scheme, with Lui and his co-conspirators allegedly using the company to illegally export sensitive AI technology to China.
Legal Consequences and Court Appearance
Lui is charged with conspiracy to violate the Export Control Reform Act, outbound smuggling, and conspiracy to commit money laundering. If convicted on all counts, he could face up to 50 years in federal prison. He is scheduled to appear in court on Friday in downtown Los Angeles.
“We will aggressively prosecute those who put our national security at risk for profit,” said First Assistant United States Attorney Bill Essayli, highlighting the gravity of the case and the potential impact of the stolen technology on China’s military capabilities.
Source: OANN
