Nvidia has been fined nearly $6 million for illegally hiding the number of graphics cards sold to crypto miners. The U.S. Securities and Exchange Commission made the allegations and the agreement public today at the same time.
As the US Securities and Exchange Commission (SEC) announced today, an agreement was reached with Nvidia to pay a $5.5 million fine. The background is that the stock market regulator believes that Nvidia has concealed from the cryptocurrency mining report how many graphics cards it has sold to customers.
The volume of sales to cryptominers not recorded
Nvidia allegedly misled its shareholders by reporting a significant increase in sales from its “gaming” division, but not disclosing how many of the products sold were sold to crypto miners. So the group hid how much of the reported success was due to the highly fluctuating crypto market. Specifically, it concerns Nvidia’s business figures for the fiscal year 2018. According to the SEC, in 2017, whose sales were reported in 2018, Nvidia saw a huge increase in sales from the sale of products used for “mining” cryptocurrencies. At that time, Ethereum mining was particularly rewarding, which is one of the reasons for the persistent bottlenecks in graphics card availability and skyrocketing prices to this day.
Because Nvidia has consistently refused to provide accurate data on the sale of its products to crypto miners, investors and shareholders are alleged to have failed to provide credit risk assessment data. As a result, Nvidia would have violated the requirements of the stock market regulator. However, as part of its agreement with the SEC, Nvidia is not required to admit any violations. However, a commitment is made to provide clearer information in the future, so the group is now likely to provide more detailed information.
Brian is the news author at Research Snipers which mainly covers Technology News, Microsoft News, Google News, Facebook, Apple, Huawei, Xiaomi, and other tech news.