assuming the offshore GPU use is ok, the main issues are that the buyer companies' addresses turned out to be empty locations (shell companies?), and megaspeed's supposed "data center" was just a warehouse stacked with boxed GPUs on pallets.

this "data center" was one of those locations that Alibaba was supposed to remotely use, assuming the terms were that they had to. the implication is that this "data center" was fake and that GPUs were physically routed to China still.

https://www.cbsnews.com/news/megaspeed-nvidia-china-ties/