Nvidia Chip Smugglers Granted Bail in Singapore Over $390M Fraud Allegation

# Nvidia # Dell

In Singapore, a judge recently granted bail to three men accused of deceiving suppliers of server computers possibly containing Nvidia chips, which are subject to U.S. export restrictions. These restrictions aim to prevent the sale of such chips to specific countries, particularly to halt their distribution to organizations in China. This development follows the charges filed against the trio nearly two weeks ago, accusing them of smuggling Nvidia chips and defrauding Dell and Super Micro by misrepresenting the intended locations of the servers. According to Singapore prosecutors, the fraud involved servers supplied by Singaporean companies and subsequently moved to Malaysia, with transactions amounting to approximately $390 million, as reported by Reuters. The ultimate destination of these servers remains uncertain. The bail amounts were set at S$800,000 ($600,000) and S$600,000 for the two Singaporean men, and S$1 million for the third man, a Chinese national. The next court hearing is scheduled for May 2. The prosecution has requested an eight-week delay to finalize their investigation and proposed specific bail conditions. These include barring the men from airports or border checkpoints and prohibiting them from discussing the case if released on bail, as per Bloomberg. Additionally, the Chinese man is required to wear an electronic monitoring device. Nvidia's latest annual report indicates that Singapore contributed 18% of the company's revenue for the fiscal year ending January 28, despite shipments to the country representing less than 2% of total sales. The AI industry globally took notice of China's DeepSeek in January, due to its advanced technology and cost-effective solutions. This spotlight has raised concerns about DeepSeek's sourcing of chips, as its AI operations are powered by Nvidia's chips, despite U.S. efforts to restrict such exports to China. Last week, Malaysia announced its intention to take "necessary action" against Malaysian companies involved in a fraud case related to the alleged transfer of Nvidia chips from Singapore to China. [ttpp] > Singapore arrests alleged Nvidia chip smugglers [yyxx]

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