Federal agents arrested California tech CEO Greg Lui on October 1, 2026. He is accused of smuggling more than 300 million dollars in restricted AI chips to China. The arrest took place at his company’s headquarters in the City of Industry.

Lui, 38, also known as Yiu Kong Lui, founded Earthmade Computers in San Gabriel. Prosecutors say he used the firm to buy high-end servers packed with Nvidia AI chips. He allegedly routed them through Malaysia and Singapore with false paperwork hiding the final destination.

The scheme ran from 2023 to 2024, according to a US Department of Justice press release. The chips allegedly reached buyers in China, including the Chinese government. Lui faces charges of conspiracy to violate export controls, smuggling, and money laundering conspiracy.

He could face up to 20 years in prison if convicted. The FBI, the Commerce Department’s export enforcement office, and the Defense Criminal Investigative Service are jointly investigating the case.