Nvidia has been fined $5.5 million by the U.S. Securities and Exchange Commission for concealing how many GPUs it sells to crypto mining. This decision of CES; Based on information found in the company’s 2018 financial reports.
Nvidia, which has become one of the first brands to come to mind when it comes to graphics cards, was sued for allegedly hiding sales figures. crypto mining is still a controversial issue today. Some countries are trying to bend the laws on the subject today, while others are taking new steps to prevent the dangers for the environment.
The SEC also reported that Nvidia misled investors by hiding revenues from crypto mining. The company was fined by the US Securities and Exchange Commission after investigating the allegations.
Nvidia will pay $5.5 million for not publicly disclosing its activities
These accusations against Nvidia are based on the company’s 2018 financial records. The U.S. Securities and Exchange Commission (SEC) stated that the company saw a huge boom in sales after crypto mining increased in 2017. On top of that, an investigation was started on Nvidia’s 2018 sales reports. According to the SEC’s claims, Many of the company’s employees are blaming this increase in sales and GPUs to crypto miners. He admitted he was leaving. This is where the problems arose because Nvidia didn’t explicitly mention GPU sales for crypto mining.
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The SEC also asked Nvidia analysts and investors about the issue, collecting information about the extent to which the company’s game revenues were affected by crypto mining. Nvidia, on the other hand, did not mention mandeling-related sales as a factor in the success of its gaming division, which led the SEC to believe that Nvidia was deliberately engaging in deceptive behavior. Towards the end of 2018 With the crypto market crash, the company’s quarterly earnings estimates dropped by $500 million. This led to lawsuits against shareholders.
Nvidia, on the grounds that it did not explicitly state these activities, He was fined $5.5 million by the SEC. “Nvidia’s disclosure failures have deprived the company’s investors of critical information to assess their important business in the market,” said Kristina Littman, SEC Head of Crypto Assets and Cyber Unit.
Source :
https://www.theverge.com/2022/5/6/23059930/nvidia-sec-charges-fine-settlement-gaming-gpu-crypto-mining