Singapore’s $390M Fraud Investigation Linked to Nvidia AI Chips and China’s DeepSeek

Singapore and Malaysia Investigate Fraud Linked to US Servers and Nvidia Chips

Authorities in Singapore and Malaysia are deepening their investigation into a major fraud case involving the supply of US-made computer servers, potentially containing high-performance Nvidia chips, to Chinese AI firm DeepSeek.

These chips, subject to strict US export controls, are at the heart of growing concerns that they may have been diverted to China through questionable transactions in Southeast Asia.

Fraudulent Server Dealings Uncovered

Prosecutors in Singapore have revealed that a significant fraud operation is underway, with three men charged for falsely representing where servers from Dell and Super Micro would end up.

The servers, valued at $390 million, were purportedly meant for use in Malaysia but may have contained Nvidia chips potentially destined for DeepSeek.

Investigations are focused on whether the servers were rerouted to circumvent US export controls.

Li Ming, a Chinese national, faces charges related to fraud and the unauthorized access of corporate accounts.

His lawyer, Wendell Wong, confirmed he would not contest the bail amount set at $1 million.

Meanwhile, Singaporean suspects Aaron Woon and Alan Wei, both involved in a local tech firm, Aperia Cloud Services, face similar charges and were each offered bail amounts of $600,000 and $800,000, respectively.

The DeepSeek Connection and US Investigations

DeepSeek, a Chinese AI startup, launched its AI platform in January 2025, which garnered worldwide attention by reportedly using Nvidia’s advanced chips.

This raised alarm in the US, as export controls were imposed on high-performance AI semiconductors to prevent such technology from falling into the hands of companies linked to China’s military and surveillance sectors.

US authorities are currently investigating whether DeepSeek has managed to obtain these chips through illegal channels.

As of now, Nvidia has not confirmed if DeepSeek sourced any export-controlled chips from Singapore, but the potential connection remains under scrutiny.

Questionable Export Activities Across Borders

According to Singapore’s Home Affairs and Law Minister K. Shanmugam, while the servers likely contained Nvidia chips, it has not yet been confirmed whether these were the advanced models that fall under export restrictions.

Minister K. Shanmugam of Home Affairs and Law

The case revolves around the servers being sent from US companies to Singapore-based firms before being exported to Malaysia, bypassing regulatory oversight.

The servers may have been routed to other destinations, including China, raising further suspicions.

Prosecutors have disclosed that the scale of the fraudulent transactions is immense, with Wei and Woon allegedly receiving substantial financial gains, including dividends and bonuses running into millions of dollars.

Authorities are continuing to investigate whether additional suppliers or individuals are involved in similar fraudulent activities.

Wider Investigation Into False Representation

The fraud case is part of a broader investigation by Singapore’s police, which has already identified 22 individuals and companies suspected of making false representations in business transactions.

Six people have already been arrested, with further arrests expected as the probe continues.

Singaporean authorities are looking into the extent of the false representations made by the suspects regarding the final destinations of the servers.

Li Ming, one of the key suspects, has been accused of making false claims about the end user of the servers.

He allegedly misrepresented the intended recipient as a company he controlled, named Luxuriate Your Life, before accessing an OCBC corporate account without authorization.

The servers were later sent to Malaysia under dubious circumstances.

Prosecution Pushes Back on Lower Bail Requests

During the March 13 court proceedings, lawyers for the accused requested lower bail amounts, arguing that their clients had strong local ties.

Singapore’s State Courts

However, the prosecution pushed back, emphasising the seriousness of the charges and the ongoing nature of the investigation.

The amounts involved are significant, with the total believed to be around $250 million for Wei and Woon’s activities and $140 million for Li’s.

With investigations still unfolding, the involvement of Malaysia in this case is also being closely monitored.

Authorities are exploring whether Malaysian laws were violated in the export of the servers and if any further actions need to be taken in relation to the servers’ true destination.

As of now, the three men will return to court on 2 May 2025.

The investigation continues to examine the full extent of the fraud and its implications for both global trade and the tech industry, with a particular focus on the role of Nvidia chips in powering China’s AI ambitions.