Fake 'New' GPU Operation in China Leads to 22 Arrests

counterfeit graphics card police raid
(Image credit: VideoCardz / Bincheng Police)

Chinese police recently raided a graphics card ring that engaged in deceptive behavior, arresting 22 people and seizing millions of dollars worth of goods. The Bincheng Police department posted details and images of the raid on social media, as was spotted by ITHome and VideoCardz. Seven of those 22 people were detained. The police report says that the value of the graphics cards and related goods seized exceeded 15 million Chinese Yuan (just over $2 million USD).

This operation specialized in was taking in old, second-hand graphics cards, then going through a process including cleaning and re-packaging to eventually re-sell them as new.

The group had a relatively sophisticated operation. It had people dedicated to buying up used graphics cards. Once cards had been received there were people who would clean and test the components. Next in line were people responsible for repackaging and labeling of the old cards. Last in line were a sales team, distributing the wares.

The group could have potentially been legitimate without the deliberately misleading repackaging and relabeling step of their production process. That would have had a big impact on their potential profits, sure, but they wouldn't now be going to prison.

The buying of used graphics cards has become riskier in the wake of cryptocurrency mania. Many still relatively modern and powerful graphics cards are in circulation which may have spent time trying to mine. It may seem like a long time ago, but mining Ethereum was still possible less than a year ago

We have previously reported on used mining graphics cards being much more prone to issues than new stock. Even the resellers don't seem to respect them, sometimes jet washing them or selling them by the kilo in the streets. Just as importantly, as with many used items not backed by a manufacturer, buyers won't get the warranty cover from the associated brand, or as promised on the renewed packaging.

Mark Tyson
News Editor

Mark Tyson is a news editor at Tom's Hardware. He enjoys covering the full breadth of PC tech; from business and semiconductor design to products approaching the edge of reason.

  • artk2219
    That is a shame, if they would have labeled them as refurbished they would have been in the clear, but i guess they wanted that extra 25% on top.
    Reply
  • InvalidError
    artk2219 said:
    That is a shame, if they would have labeled them as refurbished they would have been in the clear, but i guess they wanted that extra 25% on top.
    If they buy used known-good GPUs that could already go as-is for about the same price people would buy refurbs for, they'd need to get a pretty good deal on those used cards to make a margin worth bothering with by selling them as refurbs.
    Reply
  • Sluggotg
    Even if they were selling them as Refurbs, we still don't know the history. Buying a used card from someone who used it at home is not that big of a risk. These card may have ran for years, at full Tilt. They are a huge risk.
    Reply
  • Oleksa
    I don't understand who this theatrical performance is intended for))
    After all, this is one of the fundamentals of Chinese business - to make money by deceiving and selling a bunch of low-quality fakes, so that in a short time people come back and buy the "better" product (under a different brand) again. In other words, giving money for a pile of garbage again.
    It is clear that not only Chinese companies that sell garbage are guilty of this)).
    Reply
  • Dragos Manea
    Admin said:
    A sizable graphics card refurbishing operation has been arrested in China, with seven of the 22 detained in custody, and millions of dollars worth of stock confiscated.

    Fake 'New' GPU Operation in China Leads to 22 Arrests : Read more
    How do you arrest an operation? Is not an operation closed down and people are arrested?
    Reply
  • pclaughton
    Oleksa said:
    I don't understand who this theatrical performance is intended for))
    After all, this is one of the fundamentals of Chinese business - to make money by deceiving and selling a bunch of low-quality fakes, so that in a short time people come back and buy the "better" product (under a different brand) again. In other words, giving money for a pile of garbage again.
    It is clear that not only Chinese companies that sell garbage are guilty of this)).
    It's simple: this operation sold to their own people.
    Reply
  • dangerboybb
    Admin said:
    A sizable graphics card refurbishing operation has been arrested in China, with seven of the 22 detained in custody, and millions of dollars worth of stock confiscated.

    Fake 'New' GPU Operation in China Leads to 22 Arrests : Read more
    That's odd, the article didn't mention anything about them selling them as refurbished, it entailed they were trying to sell them as new.
    Reply
  • InvalidError
    dangerboybb said:
    That's odd, the article didn't mention anything about them selling them as refurbished, it entailed they were trying to sell them as new.
    That was exactly the point of the article: they got busted for selling refurbs as new.

    If they had been honest sellers selling their refurbs as refurbs, they would probably still be in business today.
    Reply