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Published: March 15, 2022

Written by: Stefan Velikov

  • XFX has closed its Chinese site after the Chinese Customs Office seized thousands of mislabeled GPUs
  • The total worth of the parts was estimated at around $3.15 million, with most of them being RX 6700 XT
  • While XFX has not been condemned for doing it on purpose yet, the mislabeling might be an attempt at tax evasion

XFX has shut down its Chinese website after the Chinese Customs Office found 5,840 mislabeled GPUs.

XFX Mislabeled Thousands of GPUs

XFX, an American electronics company that specializes in the manufacturing of video cards, power supplies and motherboards, has found itself in trouble. The firm’s Chinese branch was found guilty of mislabeling thousands of graphics processing units (GPUs) – something it might have done on purpose to avoid taxation.

The Chinese Customs Office reported that thousands of mislabeled graphics cards were seized in the operation. According to the Chinese website MyDrivers, the total number of cards was 5,840 with most of them being RX 6700 XTs. If this is correct, the total price of the GPUs sits at around $3.15 million.

Following the seizing of the mislabeled cards, XFX shut down its website in China. As of the time of this writing, it cannot be said for certain whether the company mislabeled the GPUs on purpose or if it was an accident.

XFX Is Suspicious but Hasn’t Been Accused Yet

XFX is a company that is known to sell GPUs directly to cryptocurrency miners, which leads some people to believe the mislabeling incident might be a scheme to earn the firm some easy money. Previously, the company has preferred to benefit from the crypto sector than to place its trust in the retail tech shops. According to VideoCardz, XFX has had a whole shipment of AMD RX 500 and 5000 cards sold directly to crypto miners.

PC parts have been getting progressively more expensive due to the shortages in global supply. This has led companies to focus on maximizing their profits, which in turn has led to prices skyrocketing. Certain GPU and CPU models are being sold for triple their intended price, which leads to an increase in fraud such as smuggling, tax evasion, etc.

There were several instances of people who tried to smuggle expensive computer parts by strapping them to their bodies via duct tape.

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