SEC Fines Nvidia $5.5 Million for its Apparent Non-Disclosure of the Effects of Crypto Mining on the Gaming Industry

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Nvidia, several gamers’ favorite manufacturers of graphics cards, has reportedly been fined by the US SEC $5.5 million for apparently not disclosing the effects of crypto mining on the gaming industry as a whole.

According to the announcement made by the SEC, Nvidia failed to disclose that crypto mining played a major role in its recent upsurge in material revenue based on the sales of its main product, the GPUs, during 2018. The SEC seemingly is referencing the fact that crypto miners take advantage of the high processing capabilities of such gaming products for their day-to-day operations, to the point that many now associate GPUs more with crypto mining rather than gaming itself.

Cyber Unit Chief of the SEC, Kristina Littman, states that Nvidia’s disclosure failures took away a significant amount of essential information for investors to adequately evaluate the company’s business stature within its key market. She adds that all issuers, even those that pursue opportunities concerning such developing technologies, must ensure that their respective disclosures are complete, accurate, and timely.

Nvidia has since agreed to pay the $5.5 million penalty imposed by the regulator and will now be subject to a cease-and-desist order based on its violation of the Securities Act of 1933 and the disclosures required via the Securities Exchange Act of 1934.

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