key takeaways
- NVIDIA has agreed to pay $5.5 million in penalties to the SEC.
- The SEC accuses NVIDIA of improperly disclosing how big an impact its cryptomining sale had on its gaming business.
- Although it agreed to pay the penalty and sign a ceasefire, NVIDIA neither admitted nor denied the allegations.
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The Securities and Exchange Commission has settled allegations against NVIDIA for failing to disclose properly the extent to which the sale of its cryptomining machinery affected its business. For this, NVIDIA will pay a fine of $ 5.5 million.
SEC inks agreement with tech giant
Semiconductor giant NVIDIA has settled with the SEC on allegations that its reporting could mislead or harm investors.
NVIDIA has settled allegations with the SEC for failing to disclose the impact of its cryptomining hardware on its gaming business. The Commission announced today that NVIDIA will pay a $5.5 million fine.
The allegations stemmed from allegations that in 2018, NVIDIA failed to report that a significant portion of the growth in revenue from its gaming business came from cryptomining sales, which should be disclosed given the industry’s volatility. Furthermore, since NVIDIA highlighted that crypto was a driving force behind other aspects of its business, it misled investors into thinking that its gaming business was also not seriously affected by crypto, the SEC said. had got.
Specifically, the SEC argued that NVIDIA violated a section of the Securities Act of 1933 as well as the disclosure provisions contained in the Securities Exchange Act of 1934. In addition, the SEC’s order accused the hardware and software company of neglecting its obligation to maintain adequate. Regulates disclosure and follows appropriate procedures.
Although Tender has neither confirmed nor denied the commission’s findings, it agreed to pay a cease-and-desist order and a $5.5 million fine.
Christina Littman, Head of the Crypto Assets and Cyber Unit of the SEC’s Department of Enforcement, said:
“NVIDIA’s disclosure failures deprived investors of critical information to evaluate a company’s business in a key market. All issuers, including those pursuing emerging technology-related opportunities, should ensure that their disclosures are timely. Be complete and precise.”
In February 2021, the company announced plans to further differentiate its mining and gaming businesses by releasing specialized mining equipment for Ethereum.
Disclosure: At the time of writing, the author of this article owns BTC, ETH, and several other cryptocurrencies.