NVIDIA pays SEC $ 5.5 million for alleged failure, disclosed crypto sales increases

NVIDIA pays SEC $ 5.5 million for alleged failure, disclosed crypto sales increases

The Gaming giant NVIDIA will pay the SEC $ 5.5 million because it is said to have not properly disclosed the effects of cryptocurrency mining on its income.

The SEC found that Nvidia had not announced in 2018 that the mine was an "essential element of its material sales growth".

The processors of the Santa Clara company were developed and marketed for games, but the customers found that they were also efficient in generation of new cryptocurrencies, especially Ethereum.

In particular, the SEC emphasized two NVIDIA disclosures from 2018, which reported a “essential” sales growth in his gaming business, although Nvidia knew that growth was significantly promoted by crypto mining.

"Nevertheless, NVIDIA did not disclose in its forms 10-Q, as it was prescribed, these significant earnings and cash flow fluctuations in connection with a volatile business for investors to determine the likelihood that past performance was a reference to future performance." The s called in a press release.

The regulatory authorities considered the alleged omission to be misleading because Nvidia had already disclosed to what extent other parts of his business were boosted by the crypto demand. The US value paper supervision said that it gave the impression that Nvidia's gaming sector was not significantly affected by the cryptocurrency mining.

The Nvidia share almost doubled between September 2017 and September 2018, an exciting time for the cryptoma markets that was driven from Bitcoin to $ 20,000.

The company's chipsets are still popular with miners, much to horror the players. NVIDIA even

"Nvidia's failure of disclosure has withheld important information from investors to evaluate the company's business in a key market," said Kristina Littman, who heads the Crypto Assets and Cyber Unit of the Sec Enforcement Division.