A growing scandal around Nvidia chips reaching China despite US export bans is now putting Commerce Secretary Howard Lutnik's job at risk.

• A Singapore-based company called Mega Speed bought billions of dollars of Nvidia chips and is suspected of funneling them to China, which is banned from getting this advanced AI tech.
• One of Nvidia's former CEO's alleged affair partners ran Mega Speed, raising questions about whether he knew of or helped the scheme, since he had lobbied against the export bans.
• Nearly every major federal agency wanted Mega Speed blacklisted from US trade, but Lutnik's Commerce Department blocked it, even after Trump personally ordered the export controls enforced.
• Lutnik has a financial conflict of interest: his old firm, now run by his sons, holds major Nvidia stock, so blocking the ban benefits his family's money.
• Lutnik also faces separate credibility problems after denying, then being shown to have had, repeated contact with Jeffrey Epstein after 2005.

Outlook: Trump is reportedly weighing whether to drop the matter, but pressure is building for a real investigation or Lutnik's removal.