Singapore seizes $42 million bungalow in AI server fraud probe

Singapore police on Wednesday issued a prohibition of disposal order on a Good Class Bungalow valued at S$55 million, or about US$42.4 million, and seized about S$1 million in bank funds as they widened a fraud probe into AI server shipments. The property is linked to businessman Alan Wei and is 12 Chee Hoon Avenue.

The case centers on Aaron Woon Guo Jie, Alan Wei Zhaolun and Chinese national Li Ming, who were charged on Feb. 27, 2025 with fraud for allegedly concealing the actual end-user of servers supplied by Dell and Super Micro. Police have now filed additional fraud charges against Woon, Li and Jenny Lim, the chief financial officer of a company involved in the case, and expect to bring further charges next week against Wei, including money laundering. Four companies are also facing fraud-related charges.

The servers may have contained advanced Nvidia AI chips and were shipped from Singapore to Malaysia, while the final destination remains under investigation. K Shanmugam, Singapore’s law and home affairs minister, said in March 2025 that the case began after an anonymous tip-off and was handled independently by Singapore, not at the request of the United States. Singapore has also asked Malaysian and US authorities to share information as investigators try to determine whether Malaysia was only an intermediate stop.

The broader police investigation now covers 22 individuals and companies suspected of false representation. The charge sheets carry potential jail terms of up to 20 years, a fine, or both.

The Singapore probe comes as regional authorities step up enforcement against chip diversion networks. Last week, Malaysian authorities foiled an attempt to smuggle 72 servers worth nearly US$13 million through Kuala Lumpur’s main airport. Investigators are examining possible routes used to move advanced semiconductors toward China and Singapore’s role as a transshipment and invoicing hub in the AI supply chain.