In Singapore, a judge has granted bail to three individuals suspected of deceiving suppliers of server computers, which may contain Nvidia chips subject to U.S. export restrictions. These restrictions are in place to prevent the sale of such chips to certain countries, particularly as a means to halt their sale to organizations in China.

This development comes nearly two weeks after the three men in Singapore were charged with smuggling Nvidia chips and committing fraud against Dell and Super Micro by providing false information about the intended location of the servers.

According to Singaporean prosecutors, the fraud case involves servers supplied by companies based in Singapore, which were then transported to Malaysia, with the total value of these transactions amounting to approximately $390 million, as reported by Reuters. The final destination of these servers remains unclear.

The bail for the two Singaporean individuals was set at S$800,000 ($600,000) and S$600,000 each, whereas the third individual, a Chinese national, had his bail set at S$1 million. The next court hearing is scheduled to take place on May 2.

The prosecution requested a delay of eight weeks to complete the investigation and proposed specific conditions for the bail, including restricting the individuals from accessing airports or border checkpoints and prohibiting them from discussing the case if released on bail, as reported by Bloomberg. The Chinese national is also required to wear an electronic monitoring device.

Nvidia’s latest annual report indicates that Singapore accounted for 18% of the company’s revenue in the fiscal year that ended on January 28, despite the fact that shipments to the country constituted less than 2% of total sales.

In January, China’s DeepSeek garnered significant attention in the AI industry due to its advanced technology and cost-effective solutions, raising concerns about the sourcing of its chips. DeepSeek‘s AI technology is powered by Nvidia’s chips, despite efforts to restrict exports and prevent the use of this technology in China.

Malaysia has stated that it will take necessary action against any Malaysian companies implicated in the fraud case related to the alleged transfer of Nvidia chips from Singapore to China.