Singaporean authorities have dismantled an illicit trade network involving Nvidia chips in a large-scale operation. Raids conducted across 22 locations resulted in the arrest of nine individuals, with three already formally charged with fraud.
Among the suspects are two Singaporean nationals who allegedly misled a server supplier by falsely claiming that the equipment would remain with an “authorized end recipient.” However, police suspect that the hardware may have been resold to third parties. Additionally, a Chinese national has been detained on allegations that, in 2023, he submitted fraudulent information regarding the end user of the equipment. The suspect reportedly declared that the hardware was intended for a company named Luxuriate Your Life, though this claim was later found to be untrue.
Investigators are now probing whether Dell and Supermicro servers in question contained Nvidia chips that are prohibited from export to China. Law enforcement officials suspect that the equipment may have been diverted to Malaysia in an attempt to circumvent trade restrictions. Meanwhile, U.S. authorities are scrutinizing whether the company DeepSeek played any role in the scheme.
Nvidia’s financial report confirms that the company supplies products to Singapore. Although the country accounted for 18% of Nvidia’s revenue for the 2025 fiscal year, actual shipments to the region represented less than 2% of total sales.
Dell told TechCrunch that it adheres to strict trade compliance regulations and is conducting investigations into customers who fail to meet legal requirements. Nvidia declined to comment, while Supermicro has yet to respond to journalists’ inquiries.
Under Singaporean law, fraud involving the submission of false information carries penalties of up to 20 years in prison, hefty fines, or both. Authorities continue to investigate the remaining detainees, while customs officials are examining potential violations of import and export regulations.
