California Tech Company Owner Indicted for Smuggling Over $300 Million in Export-Controlled GPU Servers to China

The US Department of Justice announced the arrest on 1 October 2026 of the owner of a California technology company on a three-count indictment (returned 29 September, Central District of California) for smuggling more than $300 million in high-end computer servers containing export-controlled US-made GPUs to China. Between 2023 and 2024, he allegedly bought the servers from US manufacturers using false end-user documentation, shipped them to Malaysia and Singapore, where no licence is required, and re-exported them to China without the required Commerce Department licences. His company allegedly received more than $176 million from two Malaysia-based shipment companies between January and October 2024. He is charged with conspiracy to violate the Export Control Reform Act and the Export Administration Regulations (maximum 20 years), outbound smuggling (maximum 10 years) and conspiracy to commit money laundering (maximum 20 years). The case is being investigated by Commerce's Office of Export Enforcement, the Defense Criminal Investigative Service and the FBI.