Chinese Police Cracks Down On A Group Involved In Making Counterfeit GPUs

ITHome’s recent report highlights the escalating trend of Chinese counterfeit GPUs in the global market, which has further intensified following the decline of crypto mining. However, the Chinese local police have taken action and successfully dismantled a group responsible for selling millions of dollars worth of these fake GPUs.

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The origin of this entire situation can be traced back to the post-COVID era when the crypto-mining industry experienced a crash. As a result, miners found themselves in a dire situation, trying to dispose of their GPU inventory. Due to the continuous stress they endured during mining, these GPUs are now in severely deteriorated condition, significantly reducing their lifespan.

To minimize losses, a specific group emerged, particularly in China, where individuals would refurbish and optimize graphics cards to make them appear brand new. These refurbished cards were then repackaged and distributed to various countries, including the US, where they were sold by major retailers. However, as the prevalence of these “fake” GPUs grew, crackdowns against such groups commenced, with the latest case occurring in Bincheng District, China.

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During a police raid in China, a warehouse was uncovered containing numerous stacks of mining GPUs. The individuals apprehended during the operation were found to be engaged in the repackaging of GPUs. As a result, 22 people were detained. The confiscated items, mostly rebranded cards, were estimated to be worth 15 million RMB, equivalent to $2 million US.

In various popular regions, access to these “counterfeit” GPUs remains prevalent, putting gamers at risk of falling victim to illegal groups. To avoid such traps, we recommend that consumers opt for the latest-generation GPUs from reputable brands like NVIDIA or AMD. Although the prices of counterfeit GPUs might be tempting, it is safer to purchase graphics cards and PC hardware from trustworthy retailers such as Newegg or Microcenter, as they offer high-quality products and reliable after-sales services.

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Via Videocardz

Images Credit: Bincheng Police