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US Treasury chief blames Commerce Dept for failure in Nvidia scandal

US Treasury chief blames Commerce Dept for failure in Nvidia scandal

Bessent said Treasury, the Defense Department, the US Trade Representative's office and the State Department had backed adding Megaspeed to the Washington's trade blacklist, "for months."

US Treasury Secretary Scott Bessent on Friday blamed the Commerce Department for failing to blacklist Megaspeed, the Singapore company at the center of a scandal that prompted Nvidia chief executive Jensen Huang to resign.

Speaking on CNBC, Bessent said Treasury, the Defense Department, the US Trade Representative's office and the State Department had backed adding Megaspeed to the Washington's trade blacklist, "for months."

"But Commerce has the pen," Bessent said. "You will have to ask them about their internal processes."

He said he was "frustrated" because President Donald Trump "made it very clear that China should not receive any Nvidia chips above H100s."

"Any leakage is very frustrating because it hurts our great companies, and in the AI race gives the Chinese an advantage," he said.

The remarks are a rare public rebuke of one cabinet department by another. Commerce is led by Secretary Howard Lutnick.

Megaspeed is suspected of helping Chinese firms get around US export controls by buying Nvidia chips for its data centers in Southeast Asia and routing them to China.

The company reportedly traded more than $4 billion worth of Nvidia chips over two years.

In brief

Bessent said Treasury, the Defense Department, the US Trade Representative's office and the State Department had backed adding Megaspeed to the Washington's trade blacklist, "for months. Speaking on CNBC, Bessent said Treasury, the Defense Department, the US Trade Representative's office and the State Department had backed adding Megaspeed to the Washington's trade blacklist, "for months.

This is the opening of the story, shared with credit to Citizen Digital. The rest of the report — with every detail — continues on the publisher’s website.

Continue reading at Citizen Digital ↗

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