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NVIDIA Fines $5.5M for Inadequate Disclosure in Cryptomining: SEC

America’s top financial regulator – the Securities and Exchange Commission – has calmed down With NVIDIA over allegations that the company underreported the impact of crypto mining on its gaming business. NVIDIA agreed to pay $5.5 million in fines without admitting or denying the SEC’s findings.

Inadequate Disclosures

According to the SEC press release, the chipmaker giant has failed to fully disclose information about crypto mining as a significant revenue stream for its gaming business. Since demand and interest in crypto surged in 2017, the company has been a major player in providing advanced GPUs for mining facilities.

The press release states that NVIDIA included its revenue from GPU sales to crypto miners as part of its gaming business, but the company did not disclose in its Forms 10-Q that its “growth in gaming sales was in significant part due to crypto mining was driven”. required by the SEC.

Additionally, the agency has noted that NVIDIA has not disclosed how demand for crypto has impacted the other part of its business, giving the impression that its gaming operations were not closely correlated with its involvement in mining. The Commission believes that such omissions of key information have prevented investors from properly assessing the company’s future performance.

Kristina Littman, head of the SEC’s Enforcement Division’s Crypto Assets and Cyber ​​Unit, argued that NVIDIA’s failure to disclose key information deprived investors of an opportunity to fairly evaluate its performance. She remarked:

“All issuers, including those pursuing opportunities related to emerging technologies, must ensure that their disclosures are timely, complete and accurate.”

Keep an eye on the metaverse

In addition to years of effort as a leading chip manufacturer for Bitcoin mining-Investments, NVIDIA also has its eye on the burgeoning Metaverse. The company announced this earlier this year launched a program to support artists and content creators focused on building virtual worlds and products for the metaverse.

Meanwhile, the giant said it will start distributing “Omniverse,” software for creating virtual worlds and metaverse-enabled objects. Users can use it to develop interchangeable assets or worlds in third-party markets.

Source: Crypto News Deutsch

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