Supermicro's co-founder was just accused of smuggling $2.5 billion in GPUs to China

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T_Minus

T_Minus

Build. Break. Fix. Repeat
Feb 15, 2015
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This is what happens when you get away with a slap on the wrist....



This same co-founder, Liaw, had previously resigned from Supermicro in 2018 amid a prior accounting scandal that resulted in the company restating its 2015–2017 financial statements and a $17.5 million SEC fine. He then returned as a consultant in 2021, was named SVP in 2022, and rejoined the board in late 2023.

~2017–2018: Accounting scandal — financial restatements, SEC investigation, Liaw resigns.

2020: $17.5 million SEC fine over the accounting issues.

2024: Their auditor Ernst & Young resigned, triggering another crisis. A Hindenburg Research short-seller report raised fraud allegations. The company nearly got delisted from Nasdaq, though a board-appointed independent committee found no evidence of fraud, and they filed their delayed annual report in February 2025.

2026 (now): Co-founder arrested for a $2.5 billion GPU smuggling scheme to China.
 
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Patriot

Patriot

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Apr 18, 2011
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T_Minus said:
This is what happens when you get away with a slap on the wrist....



This same co-founder, Liaw, had previously resigned from Supermicro in 2018 amid a prior accounting scandal that resulted in the company restating its 2015–2017 financial statements and a $17.5 million SEC fine. He then returned as a consultant in 2021, was named SVP in 2022, and rejoined the board in late 2023.

~2017–2018: Accounting scandal — financial restatements, SEC investigation, Liaw resigns.

2020: $17.5 million SEC fine over the accounting issues.

2024: Their auditor Ernst & Young resigned, triggering another crisis. A Hindenburg Research short-seller report raised fraud allegations. The company nearly got delisted from Nasdaq, though a board-appointed independent committee found no evidence of fraud, and they filed their delayed annual report in February 2025.

2026 (now): Co-founder arrested for a $2.5 billion GPU smuggling scheme to China.
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Seems like stating the obvious but... if they got rehired after a financial scandal, he isn't the only point of corruption inside SM.
 
Patrick

Patrick

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Dec 21, 2010
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Wally was at dinner one time pre-pandemic, but I did not know the other folks. Still, kinda crazy to see.
 
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