Dummy servers, unchecked boxes and …: FBI chargesheet details how founders of a billion dollar US tech company smuggled banned AI GPUs to China

March 24, 2026 - 04:19

A federal indictment unsealed this week details a brazen, multi-year conspiracy to illegally export thousands of powerful AI accelerator chips to China, bypassing strict U.S. national security controls. Three founders of a U.S.-based technology company now face serious charges for their alleged roles in the operation.

The defendants—Yih-Shyan “Wally” Liaw, Ruei-Tsang “Steven” Chang, and Ting-Wei “Willy” Sun—are accused of orchestrating a complex scheme to procure Nvidia A100 and H100 graphics processing units (GPUs), which are restricted for export to China due to their potential military and AI applications. The charges allege the men established a network of shell companies in Taiwan and used dummy servers to disguise the true destination of the sensitive technology.

According to the FBI’s detailed chargesheet, the defendants exploited loopholes by falsely claiming the high-performance computing chips were destined for less-regulated locations. They are further accused of deliberately failing to check required "red flag" boxes on shipping documentation that would have disclosed the involvement of Chinese entities. The illicit operation reportedly involved shipping the controlled GPUs through intermediary countries before their final delivery to mainland China.

If convicted, the defendants could face substantial prison sentences. The case underscores the U.S. government's intensified focus on preventing advanced dual-use technologies from reaching geopolitical rivals, highlighting the ongoing tech trade tensions between Washington and Beijing. Prosecutors assert the scheme was a deliberate effort to circumvent laws designed to protect national security and maintain American technological superiority.