Nvidia fined for hiding information about cryptocurrencies
The company must pay a fine valued at 5.5 million dollars to the Securities and Exchange Commission of the United States
Nvidia Corporation paid a fine valued at 5.5 million dollars to the United States Securities and Exchange Commission (SEC) for not providing information on the impact of crypto mining on its “gaming” business.
Cryptocurrency mining is a process to obtain rewards in exchange for verifying transactions made within a network. This practice skyrocketed in 2017, the year in which Nvidia customers began to use their graphics processing units (GPUs) more and more for this purpose, according to the United States Securities and Exchange Commission in a statement.
The SEC claims that Nvidia failed to identify crypto mining as a “significant” element of its revenue growth from increased sales of GPUs originally designed for gaming for several consecutive fiscal quarters of 2018.
The company was required to provide this information to its investors through 10-Q forms, something it did not do, even though these earnings and cash flow fluctuations serve as a guide for investors to “determine that past performance is indicative of future performance.”
“The SEC order also finds that Nvidia’s omissions of material information about the growth of its gaming business were misleading, given that Nvidia made statements about how other parts of the company’s business were driven by demand for crypto,” points out this body in the statement.
K. Tovar
Source: RedUSERS
