The U.S. Securities and Exchange Commission (SEC) has accused Nvidia Corp. because she did not find that cryptocurrency mining significantly increased her income. The company agreed to a termination and waiver order and pay a $ 5.5 million fine.
Nvidia did not find that cryptocurrency mining was a significant element in the growth of its material revenues
The U.S. Securities and Exchange Commission (SEC) on Friday released settled charges against technology company Nvidia Corporation “for inadequate disclosure regarding the impact of cryptocurrency mining on the gambling company’s business.”
Securities Supervision explained that during consecutive quarters in Nvidia’s fiscal year 2018:
The company failed to reveal that cryptomining was a significant element in the growth of its material revenue from the sale of its graphics processing units (GPUs) designed and marketed for gaming.
As demand and interest in cryptocurrency grew in 2017, Nvidia users are increasingly using GPUs for cryptocurrency mining games, the SEC notes.
The securities regulator explained that Nvidia was aware that the increase in revenue came from cryptocurrency mining, but did not publish it on 10-Q forms as required.
Kristina Littman, head of the SEC’s Department of Crypto Assets and Cyber Equipment, commented:
Nvidia’s data disclosure failures have deprived investors of critical information to assess the company’s performance in a key market.
Not acknowledging or denying the SEC’s findings, Nvidia agreed to the suspension and waiver order and pay a $ 5.5 million fine.
Earlier this week, the securities regulator said it had nearly doubled the size of its cryptocurrency-focused enforcement department. Several lawmakers and the SEC commissioner have fiercely criticized SEC President Gary Gensler for focusing on implementing cryptocurrencies instead of providing clearer regulation.
What do you think about the SEC charging Nvidia for not revealing the impact of cryptocurrency mining on its revenue? Let us know in the comments section below.
Credit for the pictures: Shutterstock, Pixabay, Wiki Commons
Waiver: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, nor a recommendation or endorsement of any product, service or company. Bitcoin.com does not provide investment, tax, legal or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or allegedly caused by the use or reliance on any of the content, goods or services mentioned in this article.