The US Securities and Exchange Commission (SEC) accused NVIDIA Corporation of hiding from investors information about the role of mining in the company’s revenue structure.
In an SEC statement indicatedthat during the 2018 fiscal year, cryptocurrency mining has become an important element in the growth of the corporation’s income from the sale of graphics processing units (GPUs) designed and sold for computer games.
The SEC investigation showed that as demand and interest in crypto grew, NVIDIA customers increasingly used its gaming graphics cards for mining, and the lack of information was misleading investors.
“NVIDIA has deprived investors of critical information to evaluate the company’s business in its key market. All issuers, including those pursuing new technology opportunities, must ensure that disclosures are timely, complete, and accurate to investors,” said Kristina Littman, head of the SEC’s Crypto Assets and Cyber Division.
The SEC notified NVIDIA that the corporation violated the Securities Act of 1933 and the disclosure provisions of the Securities and Exchange Act of 1934, and as a result of the investigation, the corporation was fined $5.5 million. Without acknowledging or denying the findings of the SEC, NVIDIA agreed to pay a fine.
At the beginning of the week, the SEC announced the creation of a new division for the control of cryptocurrency markets and the expansion of staff to combat digital fraud.
Source: Bits
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