A 38-year-old man has been indicted in the United States for allegedly running a $300 million smuggling ring that moved export-controlled Nvidia servers to restricted buyers.

Greg Lui was arrested on October 1, two days after a federal grand jury indicted him on September 29, the Department of Justice said. He faces three counts and more than 20 years in prison if convicted.

Prosecutors allege that between 2023 and 2024, Lui routed servers containing high-end Nvidia H100 and A100 chips through Malaysia and Singapore using false paperwork to hide their true destination.

The chips are subject to US export controls designed to keep advanced computing power used for artificial intelligence out of the hands of military-linked buyers in China.

The Justice Department has made enforcement of AI chip export controls a priority, with several prosecutions this year targeting networks that evade the restrictions through third countries.

Court documents allege Lui used shell paperwork to make the shipments look like ordinary computer equipment. If convicted on all three counts, he faces more than two decades in federal prison.