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Investigation linked to AI chip sector
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Authorities indicated that further charges may follow as investigators continue reviewing encrypted communications, brokerage records, and international financial transfers linked to the alleged scheme.
PRAVASISAMWAD.COM
US federal authorities have arrested an Indian-origin technology executive in California in connection with an insider trading investigation tied to the rapidly growing artificial intelligence semiconductor industry, with the arrest confirmed within the past 24 hours.
Prosecutors allege that that former Nvidia supply-chain manager Rajiv Malhotra, arrested by FBI agents in San Jose, used confidential information related to upcoming chip supply agreements and acquisition discussions to execute illegal stock trades worth millions of dollars.
According to the US Securities and Exchange Commission, investigators tracked unusual trading activity ahead of a major AI infrastructure announcement involving a Silicon Valley hardware company. Authorities claim the accused accessed non-public financial data through professional relationships and passed information to associates before the market reacted to the deal.
“This case demonstrates our continued focus on protecting market integrity in high-growth technology sectors,” an SEC enforcement official stated during a press briefing in San Francisco
Federal agents reportedly seized computers, mobile devices, and financial records during searches conducted at residential and corporate locations connected to the accused. Prosecutors are also investigating whether additional individuals participated in the alleged trading network.
The case has attracted significant attention within Indian-American technology and finance circles because of the increasing role Indian-origin professionals play in AI, venture capital, and semiconductor industries across the United States.
Legal experts noted that insider trading enforcement has intensified in sectors connected to artificial intelligence due to surging investor interest and high market volatility. “AI-related securities activity is now under extraordinary regulatory scrutiny,” said a New York-based securities lawyer.
The Indian Consulate in San Francisco acknowledged awareness of the case and stated that it is monitoring proceedings.
