The United States Securities and Exchange Commission (SEC) announced that Nvidia was fined $5.5 million for failing to adequately explain the impact of cryptocurrency on gaming activities of the company.
According to the SEC’s May 6 press release, for Nvidia’s consecutive fiscal 2018 quarter, the company illegally hid from investors that GPU sales from cryptocurrencies were a major driver of market growth. income. Nvidia accepted the termination and termination order and paid the fine, without confirming or denying the SEC’s findings.
Today we announced the charges against NVIDIA Corporation for inadequate disclosure of the impact of cryptocurrency on the company’s gaming business.
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— US Securities and Exchange Commission (@SECGov) May 6, 2022
“Nvidia’s failure to disclose has deprived investors of critical information to assess the company’s business in key markets,” Christina Litman, head of the SEC’s Cyber Division, said in a press release. . “All issuers, including those seeking the capabilities of emerging technologies, must ensure that their disclosures are timely, complete and accurate.”
Crypto mining is the process of earning crypto rewards in exchange for verifying crypto transactions on distributed ledgers.
As demand and interest in cryptocurrencies increased in 2017, Nvidia users increasingly used cryptocurrency, GPUs developed and sold for gaming.
“These large swings in earnings and cash flow are related to volatile activity allowing investors to determine the likelihood that past performance will outperform future performance,” the SEC said in a press release. Mentioned. “The SEC order also indicates that it is misleading for Nvidia to overlook important information regarding the growth of its gaming business, which also leaves an impression, given that Nvidia has made statements about how to Other parts of the company’s business are driving demand for cryptocurrencies Cryptocurrency mining from the company’s gaming business has not been significantly affected.
Source : dbl tap
