Federal indictment alleges scheme to evade export controls on sensitive AI-related technology.
Federal prosecutors recently charged two U.S. citizens and two People’s Republic of China (PRC) nationals living in the U.S. with conspiring to export restricted NVIDIA graphics processing units (GPUs) to China in violation of U.S. export-control laws. The indictment claims that the group routed hundreds of advanced GPUs through Malaysia and Thailand between 2023 and 2025.
Prosecutors alleged the defendants obtained more than $3.8 million in transfers from China to carry out the scheme, including attempts to export supercomputers containing high-end processors designed for artificial intelligence (AI) applications. The defendants were arrested in multiple states and appeared in federal court following unsealed charges.
“The indictment unsealed yesterday alleges a deliberate and deceptive effort to transship controlled NVIDIA GPUs to China by falsifying paperwork, creating fake contracts, and misleading U.S. authorities,” said Assistant Attorney General for National Security John Eisenberg. “The National Security Division is committed to disrupting these kinds of black markets of sensitive U.S. technologies and holding accountable those who participate in this illicit trade.”
The Justice Department (DOJ) emphasized that the case reflects ongoing efforts to prevent the unlawful transfer of sensitive U.S. technology that could be used to advance foreign military or surveillance capabilities.
As the Lord Leads, Pray with Us…
- For U.S. officials to act with integrity, impartiality, and commitment to national and global security as they enforce export-control laws.
- For discernment for federal legislators as they craft regulations for emerging technologies, and that their decisions promote safety while supporting responsible innovation.
Sources: Department of Justice
