From Coinpedia · By Steve Muchoki
Story HighlightsNvidia has hired external counsel to lead investigations into the recent Chinese espionage allegations involving CEO Jensen Huang.
The probe will be led by the famous investigator Joon H. Kim and his prestigious firm Wachtell, Lipton, Rosen and Katz.
NVDA stock has slid 5.47% in the day, closing at $168.89.
Congress has summoned Huang to discuss the matter, while the FBI conducts its own probe.
Independent members of the Nvidia board have now retained former acting US Attorney Joon H. Kim and his law firm, Wachtell, Lipton, Rosen and Katz, to conduct a thorough and independent probe into the Chinese spy scandal involving co-founder and CEO Jensen Huang.
Advertisement Why Nvidia specifically hired Joon H. Kim and his law firm
On Sunday, the Nvidia board developed an independent committee to investigate whether Huang’s extramarital affair compromised corporate and/or national security. The committee concluded zero data breach, with the board expressing continued confidence in his leadership role in the company.
However, in their latest action, the committee hired top prosecutor Kim to lead an external investigation into the matter. Kim is a formidable American attorney, with one of his most prolific cases being the Governor Andrew Cuomo sexual harassment investigation of 2021. His current employer, Wachtell Limpton, is arguably the most prestigious and feared “crisis management” firm on Wall Street.
By seeking an external probe, the Nvidia board is pursuing a detached and transparent approach to the matter rather than executing a corporate cover-up. This insulates members from personal legal liability, and further shareholder lawsuits and Congressional demands.
Investor lawsuits and Congressional scrutiny
On Monday, retail investor Mark Kistenmacher filed a class action lawsuit representing all investors who purchased NVDA shares between October 9, 2025 and November 8, 2026. The lawsuit demands unspecified compensatory damages from Nvidia, arguing that the firm artificially inflated its stock price by downplaying Jensen’s interactions with the former Megaspeed executive.
And while Trump has vouched for Jensen’s innocence, three House Republican Committee chairmen have summoned Huang for a closed-door Congressional briefing on the matter on November 18 (a day after its Q3 earnings report). While Jensen has pledged full cooperation with investigators, he is yet to confirm attendance for the briefing.
China and US protective measures
US lawmakers will likely propose bills to enforce tougher export rules, making it harder to sell chips to China. China, meanwhile, has called the spy allegations “unsubstantiated”, saying they are merely meant to taint its image.