Nvidia Shares Slip 1.5% After SMCI Chip Smuggling Scandal; Coinbase Adds 24/7 Futures
Nvidia shares fell 1.5% after Super Micro Computer co-founder Yih-Shyan Liaw was arrested for conspiring to export billions of dollars of U.S.-assembled servers with Nvidia AI chips to China using falsified documents. Coinbase enabled 24/7 Nvidia perpetual futures with up to 10x leverage for non-U.S. clients using USDC settlement.
1. SMCI Co-founder Arrested in Chip Export Scheme
Yih-Shyan “Wally” Liaw and two associates were arrested for allegedly conspiring to sell billions of dollars of U.S.-assembled servers containing Nvidia AI chips to China by falsifying documents and swapping serial-number labels to evade audits.
2. Nvidia Stock Reaction and Compliance Stance
Nvidia shares declined by 1.5% on the news, while Nvidia stated it does not support unauthorized exports, affirmed rigorous enforcement mechanisms and emphasized that no services or support were provided for the illicit systems.
3. Coinbase Launches 24/7 Nvidia Perpetual Futures
Coinbase introduced perpetual futures trading on Nvidia stock with up to 10x leverage for eligible non-U.S. clients, allowing cross-margining across spot and futures accounts and settling all trades in USDC stablecoins.