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🚨 BREAKING: $SMCI Super Micro co founder charged in alleged $2.5B AI server smuggling scheme tied to China
$SMCI down 13% After Hours!
Federal prosecutors say Super Micro co founder Yih Shyan “Wally” Liaw was arrested and charged in connection with an alleged scheme to divert at least $2.5 billion of U.S. AI server technology to buyers in China through Southeast Asian intermediaries. Prosecutors also allege the operation used falsified compliance measures, including dummy servers and altered labels, to evade export controls.
According to the indictment, roughly $510 million worth of servers were shipped in just a few weeks during spring 2025. Authorities say Liaw and another defendant were arrested, while a third remains at large. Reuters also reported that Super Micro was not directly charged, but the company said it had been notified of the indictment and cooperated with investigators.