Top GPU (Graphics Processing Unit) company Nvidia was fined for not reporting details on how crypto mining impacted the company's gaming business. The US SEC published a press release saying that Nvidia agreed to pay a $5.5 M penalty for not reporting that crypto mining was a part of the company's revenue growth in 2018 from the sale of GPUs developed for gaming.
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The agency noted that as crypto popularity rose in 2017, the number of Nvidia customers who used chips for mining cryptos grew. According to the SEC, in its two reports for the fiscal year 2018, the tech firm stated growth in revenue generated from its gaming business without unveiling that the sales growth was influenced by crypto mining a lot.
The SEC says Nvidia was required to report that large amounts of income and cash flow ups and downs were connected with the volatile business for investors. The order also noted that the details on its gaming business provided by Nvidia were misleading. Although the company made statements about how other parts of the company opeartions were affected by the crypto sector, it didn’t reveal that the gaming part was influenced by mining in a decisive way.
Interestingly, in March 2022 Nvidia won the lawsuit that investors filed as they believed the firm didn’t present all the details of its revenue.