Cryptomining: Nvidia fined $5.5 million for hiding information

The U.S. Securities and Exchange Commission (SEC), which oversees the U.S. stock market, has fined Nvidia $5.5 million for hiding from investors the true impact of cryptocurrencies on gaming revenues.

Chipmaker, without admitting or denying guilt, agreed to impose a fine.

Respond to crypto miners without depriving gamers

The SEC report shows that for several consecutive quarters in fiscal year 2018, when cryptocurrency prices skyrocketed and there was a global shortage of chips, Nvidia did not mention that its graphics processing units (GPUs) were being increasingly used for cryptocurrency mining, and that it was an important part of income growth.

“Nvidia management has internally expressed a desire to meet the demand for cryptocurrency mining while protecting its gaming business from cryptocurrency miners while keeping the supply of GPUs for gamers,” we may be reading.

As a result, Nvidia released a series of crypto mining processors, which the company then sold to cryptocurrency fans. However, the report claims that Nvidia employees were aware that GPU sales — primarily in China — were on the rise thanks to cryptocurrency miners.

“While the company was unable to pinpoint which GPUs were purchased for crypto mining purposes, the teams estimated, using various assumptions, that the impact [de cette activité] have reached a level indicating that it is becoming an important driver of revenue growth in the gaming business during the relevant period. »

Misjudgment of the situation

The SEC report said the chip maker posted overall growth and increased gaming revenue compared to the previous fiscal year, with gaming business revenue up 52% ​​in the second quarter of 2018 and 25% in the third quarter of the same year.

In a press release, Christina Littman, head of crypto and cybersecurity at the SEC, explains that by not disclosing this information, Nvidia prevented its investors from properly assessing the company’s video game activities.

The SEC also announced last week that it is beefing up its crypto assets and cyber threat teams with 20 new members to cover 50 people.

Source: .com

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