The US Securities and Exchange Commission announced charges against Nvidia for unlawfully obscuring how many of its graphics cards were sold to crypto miners. The SEC claims that Nvidia misled investors by reporting huge boosts in revenue while hiding the fact that the success of said revenue hinged on the volatile crypto market. Nvidia now must pay $5.5 million to settle these charges.
“NVIDIA’s disclosure failures deprived investors of critical information to evaluate the company’s business in a key market,” said Kristina Littman, Crypto Assets and Cyber Unit Head of the SEC. “All issuers, including those that pursue opportunities involving emerging technology, must ensure that their disclosures are timely, complete, and accurate.”
Nvidia had launched a cryptocurrency mining processor line specifically for mining in 2018 in an attempt to prevent GPU shortages for gamers. Crypto mining was widely reported as a cause of GPU scarcity, but Nvidia employees acknowledged that many gaming GPUs were still going to miners.
While Nvidia isn’t admitting to wrongdoing as part of the settlement, it has agreed to stop any unlawful failures to disclose information in the future.
(All information was provided by The Verge)