US Treasury Secretary Scott Bessent has blamed the Commerce Department, run by Howard Lutnick, of failing to properly oversee the export of high-specification Nvidia chips, as the fallout from the scandal widens.
Jensen Huang left the company he co-founded after revelations he had an affair a former Megaspeed executive. The firm had been buying advanced chips from Nvidia.
Megaspeed had been probed by US government agencies over suspicions it had been smuggling those chips into China, reports said, but it is not on a list of firms that US companies are prevented from working with.
Bessent told CNBC several government agencies "were in favour of putting Megaspeed on the entity list for months".
"But Commerce has the pen... and you will have to ask them about their internal process," he added.