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SEC fines Nvidia $5.5 million for hiding GPU sales to crypto miners

06/05/2022 4Browse 0Like 0Comments
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SEC fines Nvidia $5.5 million for hiding GPU sales to crypto miners

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SEC fines Nvidia $5.5 million for hiding GPU sales to crypto miners

The SEC found that Nvidia's failed to disclose sales to cryptominers in the fiscal year 2018.

GPUs have been nearly impossible to come by over the past couple of years. While a lot of those shortages can be attributed to the pandemic, the cryptocurrency business is also partially responsibles, as powerful GPUs are often used to mine currency. Now, GPU manufacturer Nvidia is being fined by the SEC for $5.5 million, as the organization states Nvidia hid its GPU sales to cryptominers.

According to a recent filing to the U.S. Securities and Exchange Commission, Nvidia is being penalized for not disclosing its GPU sales to crypto miners during consecutive quarters during the fiscal year 2018. This meant that investors weren’t given the full story, and were led to believe that Nvidia’s growing GPU revenue was primarily coming from gamers

nvidia gpu cryptominer sales

The SEC’s order finds that, during consecutive quarters in NVIDIA’s fiscal year 2018, the company failed to disclose that cryptomining was a significant element of its material revenue growth from the sale of its graphics processing units (GPUs) designed and marketed for gaming. Cryptomining is the process of obtaining crypto rewards in exchange for verifying crypto transactions on distributed ledgers. As demand for and interest in crypto rose in 2017, NVIDIA customers increasingly used its gaming GPUs for cryptomining.

When Nvidia reported financial earnings for the fiscal year 2018, the company attributed the increase in GPU sales to its gaming business, despite the fact that it knew cryptominers accounted for a large chunk of product sales, according to the SEC filing.

It’s no secret that Nvidia GPUs are popular among cryptominers, with images and videos of massive mining farms going viral on social media, as gamers continue to be frustrated with how hard it is to acquire a new graphics card. We’ll continue to monitor the situation at Nvidia and provide any necessary updates on the story.

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Last updated:06/05/2022

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