La Securities and Exchange Commission announced that NVIDIA will have to pay a $ 5.5 million fine for illegally hiding the number of video cards sold to cryptocurrency miners. The company allegedly misled investors by telling them that the huge increase in turnover was due to a increase in sales related to Gaming, hiding how much its success depended - in reality - on market of mining, which is by its nature much more volatile.
NVIDIA will pay $ 5.5 million for hiding the number of video cards intended for mining
The investigations of the Securities and Exchange Commission (SEC) were led by Brent Wilner and overseen by Diana Tani and Kristina Littman of Crypto Assets and Cyber Units. The accusations made by the Entity were raised by analyzing the NVIDIA Fiscal Year 2018 Financial Reports, from which a real one emerged sales explosion related to cryptocurrency mining happened the year before, when the mining earnings of Ethereum have seen a noticeable increase.
The activities mining would even be what would have caused the impossibility - or at least the extreme difficulty - in finding an NVIDIA video card, and what would have led the company to launch a line of specific products for the mining.
Nonetheless, company employees confirmed that many NVIDIA video cards continued to target miners, and all this to the detriment of the players.
"NVIDIA's disclosure failures deprived investors of critical information to evaluate the company's business in a key market“Said Kristina Littman. "All issuers, including those pursuing opportunities involving emerging technology, must ensure that their communications are timely, complete and accurate".
Without admitting or denying the SEC findings, NVIDIA has agreed to pay a $ 5.5 million fine for violating Section 17 (a) (2) and (3) of the Securities Act of 1933 and the disclosure provisions of the Securities Exchange Act of 1934.
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