SEC fines Nvidia $ 5.5 million for failing to disclose crypto mining significantly increases revenue – Regulation Bitcoin News

The US Securities and Exchange Commission (SEC) has charged Nvidia Corp. for failing to disclose that cryptocurrency mining significantly increased revenues. The company agreed to a cease-and-desist order and to pay a $ 5.5 million fine.

Nvidia failed to reveal that cryptocurrency mining was a significant element in its material revenue growth

The US Securities and Exchange Commission (SEC) announced settled charges against technology company Nvidia Corporation on Friday “for insufficient disclosures regarding the impact of cryptocurrency on the company̵[ads1]7;s gaming operations.”

The Securities Depository explained that in subsequent quarters of Nvidia’s financial year 2018:

The company failed to reveal that cryptocurrency was a significant element in its material revenue growth from the sale of graphics processing units (GPUs) designed and marketed for gaming.

As demand for and interest in cryptocurrency increased in 2017, Nvidia customers increasingly used gaming GPUs for crypto mining, the SEC noted.

The Securities and Exchange Commission explained that Nvidia was aware that the increase in revenue stemmed from crypto mining, but did not disclose it on Forms 10-Q as needed.

Kristina Littman, Head of the SEC Enforcement Divisions Crypto Assets and Cyber ​​Unit, commented:

Nvidia’s disclosure failure deprived investors of critical information to evaluate the company’s business in a key market.

Without acknowledging or denying the SEC’s findings, Nvidia agreed to a stop-and-give order and to pay a $ 5.5 million fine.

Earlier this week, the securities regulator said it had almost doubled the size of the enforcement department with a focus on crypto. Several lawmakers and an SEC commissioner have strongly criticized SEC Chairman Gary Gensler for focusing on cryptocurrency enforcement instead of providing clearer regulation.

What do you think about the SEC charging Nvidia for not revealing the effect of cryptocurrency mining on revenue? Let us know in the comments section below.

Kevin Helms

An Austrian economics student, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open source systems, network effects and the intersection of economics and cryptography.

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