A Democratic lawmaker with privileged access sold Nvidia shares just before the scandal broke

According to information provided by the New York Post, a trust linked to the wife of ultra-democratic Congressman Ro Khanna sold shares of Nvidia just weeks before the company became embroiled in a Chinese espionage scandal that led to the ousting of Jensen Huang as CEO.

This trust sold between $1,001 and $15,000 in Nvidia shares on September 4 and again on October 7, when Nvidia's value was at its peak. Since then, following the outbreak of the Huang scandal, who admitted to having an extramarital affair with a Chinese Communist Party spy, the shares of the tech giant have plummeted by 30%.

Huang resigned on Thursday after a second extramarital relationship with a company executive and subordinate named Kimberly Powell was revealed. CFO Colette Kress was appointed interim CEO of Nvidia in his place.

Ironically, Khanna — a Democratic legislator with an affinity for leftist causes — had spoken out against members of Congress investing in the stock market. His team claims that these transactions had nothing to do with insider information.

"Neither Representative Khanna nor anyone on his team received any report about Megaspeed, Jensen, or any counterintelligence risks related to Nvidia. He had no knowledge of this incident until the report from the New York Times. Khanna does not trade stocks and did not give any directives or input on any transaction," his spokesperson said in a statement.