NVIDIA fined $5.5 million by SEC for not fully disclosing cryptocurrency impact

NVIDIA fined $5.5 million by SEC for not fully disclosing cryptocurrency impact

NVIDIA fined $5.5 million by SEC for not fully disclosing cryptocurrency impact

The U.S. Securities and Exchange Commission (SEC) has confirmed that it has settled its allegations against NVIDIA, with a $5.5 million fine for failing to provide shareholders with sufficient information to fully disclose the impact of cryptocurrencies on the company’s gaming business.

The SEC found that in several consecutive quarters in fiscal 2018, NVIDIA did not describe cryptocurrency as a significant factor in the substantial revenue growth from the sale of its GPUs designed for gaming.

In 2017, as demand and interest in cryptocurrencies increased, NVIDIA’s customers increasingly used gaming GPUs for related businesses.

In its financial report at the time, NVIDIA stated that the revenue of the game business had increased significantly, but this part of the increase was largely driven by cryptocurrency.

After investigation, there is information confirming that NVIDIA has information in this regard and is aware of the relevant situation, but it fails to disclose the cash flow fluctuations and major gains related to these volatile businesses in the form as required, so that investors can determine whether the past business can be Indicates the likelihood of future performance.

The SEC also found that NVIDIA was misleading in omitting important information about the growth of its gaming business, which at the time made a statement that other businesses were being driven by demand for cryptocurrencies, but downplayed whether the gaming business was affected.

The SEC found that NVIDIA violated Section 17(a)(2) and (3) of the Securities Act of 1933 and the disclosure requirements of the Securities Exchange Act of 1934, finding that NVIDIA failed to maintain timely, complete and accurate disclosures.

Without admitting or denying the SEC’s findings, NVIDIA agreed to a cease and desist order and pay a $5.5 million fine.