The indictment alleges that between 2023 and 2024 the company routed over $176 million worth of servers through Malaysia and Singapore before re‑exporting them to China.
Lui’s scheme relied on false paperwork and freight‑forwarding firms, including shipments of 27 servers worth $7.6 million in January 2024 that were allegedly transshipped from Kuala Lumpur to a Chinese buyer.
Federal prosecutors argue the servers contained high‑end GPUs used for super‑intelligence computing and that Lui deliberately misrepresented end‑user destinations to US manufacturers.
The case is now before the U.S. Department of Justice, with the FBI, Defense Criminal Investigative Service, and the Commerce Department’s Bureau of Industry and Security Office of Export Enforcement all involved. Lui faces potential sentences of up to 20 years for each of the three charges, and a 10‑year sentence for smuggling.
Lui’s arrest follows heightened scrutiny of technology transfers to China, as the U.S. tightens controls on AI‑related hardware and the export‑control regime expands.