Jay Clayton, U.S. Attorney for the Southern District of New York | Department of Justice
United States Attorney for the Southern District of New York, Jay Clayton, announced on Mar. 19 the unsealing of an indictment charging Yih-Shyan “Wally” Liaw, Ruei-Tsang “Steven” Chang, and Ting-Wei “Willy” Sun with conspiring to unlawfully divert high-performance computer servers containing advanced U.S. artificial intelligence technology to China in violation of export control laws. Liaw, a U.S. citizen, and Sun, a citizen of Taiwan, were arrested and presented in the Northern District of California; Chang remains a fugitive.
The case highlights concerns about national security risks posed by unauthorized transfers of sensitive technology abroad. The Department of Commerce has implemented license requirements for exporting certain artificial intelligence technologies to China and Hong Kong due to their potential military applications and strategic significance.
“As alleged in the Indictment, the defendants participated in a systematic scheme to divert massive quantities of U.S. artificial intelligence technology to customers in China,” said Jay Clayton. “They did so through a tangled web of lies, obfuscation, and concealment—all to drive sales and generate revenues in violation of U.S. law. Diversion schemes like those disrupted today generate billions of dollars in ill-gotten gains and pose a direct threat to U.S. national security. Crimes involving sensitive technology must be met with swift action otherwise the law is meaningless. I commend the women and men of our Office, the FBI, and the Department of Commerce for their swift action in identifying, charging, and stopping this brazen evasion of our laws that protect national security and U.S. competitiveness. We will continue to doggedly investigate and prosecute these illegal diversion schemes.”
Assistant Director Roman Rozhavsky said: “The FBI’s investigation revealed that Liaw, Chang, and Sun allegedly conspired to sell billions of dollars’ worth of servers integrating sensitive, controlled graphic processing units to buyers in China, in violation of U.S. export control laws... That’s why combating export violations is among the FBI’s highest priorities...”
According to allegations detailed in court documents, Liaw was a co-founder and executive at a publicly traded U.S.-based manufacturer specializing in high-performance computer servers for artificial intelligence applications; Chang managed operations at its Taiwan office; Sun acted as a broker facilitating unlawful exports through third-party companies using false documentation and dummy equipment during audits.
Between 2024 and 2025 alone, approximately $2.5 billion worth of servers were purchased by an intermediary company before being repackaged without proper labeling or licenses for shipment into China—$510 million worth between late April 2025 and mid-May 2025 alone.
All three defendants face charges including conspiracy to violate export controls (maximum sentence: 20 years), conspiracy to smuggle goods (maximum: five years), and conspiracy to defraud the United States (maximum: five years). Sentencing will be determined by a judge if convictions are secured.
Clayton praised federal agencies involved in investigating the case but reminded that "the charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty."
