NVIDIA, a company well known for crafting expensive and powerful GPUs, has run afoul of the US Securities and Exchange Commission (SEC). However, it’s not about scamming customers or ripping people off. No, it all comes down to crypto mining.
NVIDIA did not inform any overseeing body that a significant portion of the company’s income was being derived from crypto mining. So while it’s not NVIDIA doing the mining, the increase in revenue was partially due to the GPUs being used expressly for that use by the consumers. Since this income source wasn’t correctly noted in the 2018 filings, the SEC handed out a $5.5m fine.
We were made aware of NVIDIA’s little oopsie thanks to a story that appeared on ZDNet. The entirety of NVIDIA’s violations can be found over at the SEC’s website. However, here’s a little snippet of one misdeed the graphics card manufacturer perpetrated:
NVIDIA violated Sections 17(a)(2) and (3) of the Securities Act, which prohibit any person from directly or indirectly obtaining money or property by means of any untrue statement of a material fact or any omission to state a material fact necessary in order to make the statements made, in light of the circumstances under which they were made, not misleading, or engaging in any transaction, practice, or course of business which operates or would operate as a fraud or deceit upon the purchaser, in the offer or sales of securities. A violation of these provisions does not require scienter and may rest on a finding of negligence.
It does not appear that NVIDIA has issued an official statement regarding this fine. As the government comes to terms with how to deal with crypto, I anticipate a lot of growing pains. Sadly, this will probably end in overregulation, which is what crypto was made to avoid.
What do you think of the news that NVIDIA is taking a multi-million dollar financial hit for this newish crypto market? Let us know in the comments section below.
[Source: ZDNET]
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