Trusts linked to the wife of Rep. Ro Khanna (D-CA) and President Donald Trump himself reportedly dumped Nvidia shares, months before news of its now-former CEO Jensen Huang being involved in an extramarital affair with a suspected Chinese spy emerged.
A transaction disclosed by Trump on Aug. 21 involved the sale of up to $1 million in Nvidia stock, about two weeks earlier than the Khanna family trust's Sept. 4 reduction [1]. The scandal centers on allegations that Alice Huang, a former Megaspeed executive, collected intelligence for Beijing and helped route Nvidia chips to Chinese users in breach of U.S. export controls [2]. The sale let the trust avoid a drop of about 26% in Nvidia's share price [3].
Khanna Trust Sales and Disclosure Details
A Khanna spokesperson told the California Post that neither the congressman nor his staff received any briefing on Megaspeed, Jensen Huang, or counterintelligence risks tied to Nvidia. "He had zero knowledge of this incident until the ... report. Khanna does not trade stocks and provided zero direction or input into any trades," the spokesperson said.
The California congressman has said neither he nor his family makes trades directly. Khanna explained that his household's investments sit in a diversified trust that his in-laws established prior to his marriage. He added that an independent third-party trustee manages the holdings.
According to ZeroHedge, Khanna is one of the most vocal advocates of prohibiting lawmakers' participation in insider trading [3]. However, there are certainly reasons to be suspicious.
Trump Sale and White House Response
Meanwhile, Trump filed an Aug. 21 sale of up to $1 million of Nvidia stock, according to Quiver Quantitative [1]. In response, White House spokesperson Davis Ingle told Reuters through a statement that the president's portfolio is managed by third-party financial institutions. He added that these institutions replicate "recognized indexes, such as the Schwab 1000" [3].
Committee Assignments and Prior Trading Record
ZeroHedge expounded on Khanna's committee assignments [3]. The California Democrat sits on the House Select Committee on the Chinese Communist Party, and also serves as ranking member of the Subcommittee on Cyber, Innovative Technologies and Information Systems of the House Armed Services Committee. Moreover, Khanna also belongs to the Taiwan Caucus and the High Tech Caucus [3].
Khanna and Huang appeared together at Stanford University in April for a discussion. The discussion focused on preserving American leadership in artificial intelligence and building the domestic tech workforce [3].
Despite this, the congressman's spokesperson called for scrutiny over Huang's involvement. "Khanna believes there needs to be an investigation into what the administration knew about Jensen and any of Jensen's ties to China that could have compromised national security," the spokesperson said [3].
Scandal Fallout, Investigations, and Other Lawmakers
Nvidia's board has launched an independent investigation, and Huang himself later stepped down as Nvidia CEO. While he has admitted to the infidelity, he has remained silent on the alleged espionage.
The U.S. Department of Justice is looking into Megaspeed for potential violations of export control laws, while the Federal Bureau of Investigation is looking into the alleged intelligence operation involving China. Beijing has meanwhile dismissed the allegations as baseless [3].
Other lawmakers' households also reported Nvidia sales before the plunge: The wife of Rep. Pete Sessions (R-TX) sold $15,001 to $50,000 on Oct. 2, and the wife of Rep. Dan Meuser (R-PA) sold $1,001 to $15,000 on Sept. 25. Rep. Gil Cisneros (D-CA), Khanna's congressional colleague, reported selling $1,001 to $15,000 on Oct. 20.
References
- Rushing before NVIDIA's collapse: Trump's and. https://www.chaincatcher.com/en/article/2304413
- The unfolding Jensen Huang scandal: a timeline. https://techcrunch.com/2026/11/11/nvidia-ceo-jensen-huangs-affair-with-alleged-chinese-spy-a-timeline/
- Just A Coincidence? Both Trump And Ro Khanna Sold Nvidia Stock Before CEO Scandal Erupted. https://www.zerohedge.com/political/just-coincidence-ro-khanna-sold-nvidia-stock-ceo-scandal-erupted
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