NVIDIA Fined $5.5M for Inadequate Disclosures in Cryptomining: SEC

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The US watchdog Securities and Exchange Commission (SEC) charged NVIDIA with inadequate disclosures regarding their activities related to crypto mining

The US watchdog Securities and Exchange Commission (SEC) charged NVIDIA with inadequate disclosures regarding their activities related to crypto mining. The computer gaming company has been producing graphics cards that have been used in abundance by crypto mining companies. 

Inadequate Disclosures Chares

The impact of crypto mining on the gaming business has been profound. According to a press release from the SEC, NVIDIA failed to fully disclose information about crypto mining as a significant source of revenue. 

With stocks almost always sold out online, it’s clear there has been a huge demand for graphics cards and computer chips since cryptocurrency became a major talking point for news outlets the world over. Demand began to grow back in 2017, and since then NVIDIA has been a key provider of advanced GPUs to mining communities. 

The computer manufacturing giants didn’t reveal crypto mining sales and show that it hasn’t seen an “increase in gaming sales was driven in significant part by crypto mining” when submitting its Forms 10-Q, as required by SEC.

The SEC has shown that NVIDIA may have tried to hide the fact its gaming operations alone weren’t responded to its annual revenue. The Commission suggests that omitting this information would impede investors from properly evaluating the company’s performance. 

A statement from Kristina Littman, the Chief of the SEC Enforcement Division’s Crypto Assets and Cyber Unit, stated that “All issuers, including those that pursue opportunities involving emerging technology, must ensure that their disclosures are timely, complete, and accurate.”

What’s Next For NVIDIA?

Having spent the best part of five years supplying crypto miners with hardware, NVIDIA has been influenced by the emerging crypto space and is looking to release products to help support artists and content creators focused on building virtual worlds and products for the metaverse. 

In a statement, the company said it plans to distribute “Omniverse”, which is software for web3 and creating metaverse-related objects. This may be a setback for the company, but with one eye on the future, it seems we’ll hear more from NVIDIA in the crypto space quite soon.

Author

Mark Weaden

Mark Weaden is a British researcher and crypto enthusiast, living in Barcelona. His work has been published on a variety of leading cryptocurrency sites.