Police in Singapore have seized a multi-million dollar luxury home that was allegedly bought using proceeds from smuggling Nvidia artificial intelligence (AI) chips.

The property last changed hands for 55 million Singapore dollars (£32m; $42.5m), with at least two-thirds of its purchase price allegedly funded by illicit earnings, authorities said on Wednesday.

The home was seized as part of a probe into the alleged illegal trade in servers containing highly sought-after advanced Nvidia chips, which are subject to US export controls.

The US Department of Justice has previously flagged Singapore as a key transit hub to conceal illegal shipments to China.

The police said an order was in place to stop the property being sold during the investigation.

Located a short walk from Singapore's famous Botanic Gardens, the property sits in a prime district of the land-scarce city-state.

Wei Zhaolun, who is also known as Alan Wei, will be charged with money laundering for allegedly using around 38 million Singapore dollars of criminal proceeds to fund the purchase of the house, police said.

He is the chief executive of Aperia Group, which sells servers and other tech hardware to businesses. The BBC has contacted Aperia Group for comment.

Authorities have also seized around one million Singapore dollars held in bank accounts.

The police said a total of four people, including Wei, have been accused since February 2025 over fraud and other alleged crimes linked to the case.

The individuals allegedly placed orders for servers from global suppliers under the pretence that they would be used by companies they worked for.

Authorities have not said where the servers were shipped to.

The police said the servers in the case were bought from three suppliers - Dell, Super Micro Computer and Asus. The BBC has contacted the three companies for comment.

If convicted of fraud, the four, who face multiple charges, could face jail time of up to 20 years.

Singapore-based tech companies, Luxuriate Your Life and three firms under the Aperia Group, also face charges in what the police say is the first instance of corporate entities being prosecuted under these investigations.

The BBC has been unable to reach Luxuriate Your Life for comment.

The police said it holds a "zero-tolerance stance towards such offences" and will act against anyone who violates Singapore's laws to protect the country's integrity as a trusted global business hub.

The US and Singapore have cracked down on the illegal shipping of Nvidia chips since Washington restricted their export in 2022 over concerns that they could be used by the Chinese military.

Authorities in Singapore said in 2025 that servers containing chips under US export controls were believed to have been shipped via the island-state.

The US has since approved the sale of some of Nvidia's semiconductors to China, under certain conditions.