US prosecutors have brought a case centered on an alleged covert network that moved restricted AI servers through intermediaries while concealing their final destination. At the center of the case is Yih-Shyan “Wally” Liaw, a co-founder of Super Micro Computer, the US server and data center infrastructure company. Prosecutors say Liaw worked with Ruei-Tsang “Steven” Chang and Ting-Wei “Willy” Sun to export restricted AI servers equipped with NVIDIA GPUs, hardware that US authorities classify as sensitive because of its use in advanced AI and supercomputing.
Prosecutors say intermediaries were used to reroute shipments to China
Court documents say the group used channels in Southeast Asia, including a shell company in Taiwan, to redirect servers to China and conceal the true destination from regulators. Federal filings state that this intermediary company purchased nearly $2.5 billion in AI server equipment across 2024 and 2025.
One shipment described in the filings involved an estimated $510 million in restricted systems moved within just three weeks. The scale described by prosecutors points to a sustained operation rather than isolated transactions.
False documents and dummy servers feature heavily in the indictment
The indictment lists several concealment methods: falsified documentation, non-functional dummy servers staged in US warehouses to mislead compliance inspectors, and complex transshipment routes spanning multiple jurisdictions. Officials say thousands of units were presented as decoys to create the appearance of legitimate inventory during inspections.
Assistant Attorney General John A. Eisenberg said the conduct described involved “false documents, staged dummy servers to mislead inspectors, and convoluted transshipment schemes.” He added that the technology at issue carries critical national value and that export control enforcement will continue.
Two defendants arrested, one sought by authorities
Liaw and Sun have been arrested and are scheduled to appear in federal court in California. Chang is being sought by US authorities. The charges include conspiracy to violate export control laws, smuggling, and conspiracy to defraud the United States.
US Attorney Jay Clayton described the alleged operation as “a tangled web of lies, obfuscation, and concealment” with potential national-level risks. FBI officials also said enforcement will remain focused on protecting strategically important technology. After news of the indictment and investigation emerged, Super Micro Computer shares fell in after-hours trading. Authorities also noted that the allegations have not been proven and that all defendants are presumed innocent unless and until a verdict is reached.