Nvidia Pays Multimillion-dollar Fine Over Cryptocurrencies
Nvidia has been fined a sizeable amount of money. The reason is cryptocurrencies, or more precisely, the lack of disclosure of reliable information about their impact on the company's revenues.
Photo Source: Nvidia
GPU giant Nvidia has been fined $5.5 million. The penalty was imposed by the SEC (United States Securities and Exchange Commission).
The reason is the failure to disclose reliable information about the increased sales of GPUs.
Sales growth
The investigation that resulted in the fine in question relates to the fiscal year 2018. As reported by federal regulatory agency, Nvidia reported an increase in gaming GPU sales, but failed to tell investors that this is largely due to their ability to mine cryptocurrencies.
Why is this important? The commission explains that such large earnings and money flow fluctuations are not stable for businesses, making past sales performance not being reflected in the future. The SEC found that the company's actions were misleading the investors.
Nvidia does not deny
In an announcement to the press, the commission issued the following statement:
"Nvidia's decisions deprived investors of the possibility of reliable pearformance assessment of the company's business sector. Any entity that puts money into circulation must ensure that the information it discloses is timely, complete and accurate."
The SEC cited Nvidia for violations of the Securities Act of 1993 and the Securities Exchange Act of 1934.
The GPU maker agreed to pay a fine of $5.5 million but did not admit or deny the allegations.
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