The US Securities and Exchange Commission has fined tech giant Nvidia for failing to disclose how much crypto mining has directly impacted the company’s revenue streams.
According to a recent statement released by the SEC, Nvidia has failed to disclose exactly how crypto mining was critical to how much money they made in fiscal 2018 from sales of graphics processing units (GPUs), typically associated with PC gaming will.
The SEC’s order notes that for consecutive quarters during NVIDIA’s fiscal 2018, the company failed to disclose that crypto mining was a significant element of its substantial revenue growth from sales of its graphics processing units (GPUs) designed and marketed for games …
In two [tax forms] For fiscal 2018, NVIDIA reported significant revenue growth in its gaming business. However, NVIDIA had information that a significant portion of this surge in gaming sales was driven by crypto mining.”
The SEC alleges that Nvidia indicated that its growth in the gaming industry was organic and uncorrelated with demand for crypto assets, noting that the company was willing to disclose that digital assets impacted other aspects of its business.
“That [SEC] also notes that NVIDIA’s omissions of key information about the growth of its gaming business were misleading as NVIDIA has made statements about how other parts of the company have been fueled by demand for crypto, giving the impression that the company’s gaming business is growing Company has not been significantly impacted by crypto mining.”
Says Kristina Littman, head of the SEC Enforcement Division’s Crypto Assets and Cyber Unit,
“NVIDIA’s failure to provide disclosures deprived investors of critical information to evaluate the company’s business in a key market. All issuers, including those pursuing opportunities related to emerging technologies, must ensure that their disclosures are timely, complete and accurate.”
According to the statement, Nvidia was found to be in violation of the Securities Act of 1933 and the Securities Exchange Act of 1934. The company has agreed to an injunction and a $5.5 million fine.
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Source: Crypto News Deutsch