Super Micro Computer (NASDAQ:SMCI) shares are plunging 22% in pre-market trading this morning after the Justice Department announced it had arrested the company’s co-founder and two others for smuggling $2.

Super Micro Computer placed two employees on leave and fired a contractor after charges of diverting U.S.-assembled servers to China, violating export control laws.

The AI-centric server specialist finds itself in the spotlight once again.

Super Micro shares sank 33% on Friday after US prosecutors charged three people linked with the company, including its co-founder, with helping smuggle billions of dollars worth of AI technology to China.

Supermicro finds itself in yet another scandal.

The arrest of board member Yih-Shyan “Wally” Liaw—who previously resigned following an accounting scandal in 2018—led an after-hours trading drop of 12% in the Nvidia-linked server manufacturer's stock.

Three men linked to Supermicro are accused of smuggling $2.5 billion in AI technology to China via fake documents and shell companies, prosecutors allege.

Super Micro (SMCI) shares crashed on Friday after three individuals linked to the company were charged with smuggling. A Seeking Alpha analyst called the AI server maker a “train wreck.”

By Harshita Mary Varghese March 20 (Reuters) - Super Micro shares sank 28% on Friday after U.S. prosecutors charged three people linked with the company, including its co-founder, with helping smuggle billions of dollars worth of AI technology to China.

Supermicro co-founder and 2 others have been indicted for smuggling company servers packed with Nvidia AI chips to China.