Nvidia Fined $5.5 Million , for Not Properly Disclosing Sales to Crypto Miners.
IGN reports that on May 6, the U.S. Securities and Exchange Commission (SEC)... .
... announced Nvidia has been fined for "inadequate disclosures" pertaining to the amount of graphics cards that were purchased by crypto miners.
The SEC says Nvidia didn't reveal that crypto mining was "a significant element of its material revenue growth" for the 2018 fiscal year.
The SEC says Nvidia didn't reveal that crypto mining was "a significant element of its material revenue growth" for the 2018 fiscal year.
NVIDIA’s disclosure failures deprived investors of critical information to evaluate the company’s business in a key market, Kristina Littman, Head of SEC's Crypto Assets and Cyber Unit, via press release.
All issuers, including those that pursue opportunities involving emerging technology, must ensure that their disclosures are timely, complete, and accurate, Kristina Littman, Head of SEC's Crypto Assets and Cyber Unit, via press release.
IGN reports that there was a gaming GPU shortage in 2018 because of the high demand by crypto miners.
When there was another GPU shortage in 2020, IGN reports Nvidia released CMP graphics cards for crypto mining.
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While the gaming GPU supply has seemingly improved lately, prices are still inflated.
The Verge reports that as part of the SEC settlement, the company agrees to properly disclose information in the future.
But Nvidia hasn't admitted to any wrongdoing as part of the SEC's initial charges
