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NVIDIA Receives a Million Dollar Fine for Hiding Information About GPU Sales for Crypto Mining

The US Securities and Exchange Commission alleges that the company has misled its investors.

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We are in a turbulent time in the technology sector. The actual chip shortage and electronic components has resulted in a constant struggle for the purchase of consoles and graphics cards, which in turn has been aggravated by the entry of new competitors: the cryptocurrency miners. At the time, NVIDIA seemed to side with the gamer with various initiatives and specific limitations on its GPUs, but the green company He hasn’t missed the opportunity either. to scratch off quite a lot of benefits.

The fine amounts to 5.5 million dollars.How much money are we talking about? That is the crux of the matter. According to the latest article in The Verge, the US Securities and Exchange Commission has fined NVIDIA for hide information on the profits made from the sale of graphics cards for cryptocurrency mining. In this way, the technological giant will be forced to pay $5.5 million for, according to the CNMV, deceiving its investors.

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NVIDIA staff noted significant growth in gaming graphics card salesAs they remember in The Verge, NVIDIA developed a line of graphics CMP that was sold exclusively to cryptominers, which left the distribution of gaming graphics cards for the use and enjoyment of gamers. However, the Commission alleges that “the company’s sales staff, particularly in China, reported what they believed to be significant increases in demand for gaming GPUs as a result of crypto mining”

In addition, NVIDIA did not share the benefits of these sales with shareholders, so they could not know the profits derived from the distribution of GPUs to crypto miners: “Investors and analysts at NVIDIA were interested in understanding to what extent the department’s income Gaming of the company were affected by crypto mining and routinely asked managers about the extent to which increases in Gaming department revenue during this time period were driven by crypto mining.”

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In The Verge they complement the information by remembering that the changing value of cryptocurrencies prevents making decisions when it comes to invest in a company. After all, the profit NVIDIA has made from selling GPUs to crypto miners is not an indicator that this trend will continue to rise for years to come. For its part, NVIDIA has agreed to curb disclosure failures, though does not admit wrongdoing.

The chip shortage continues to wreak havoc on the search and acquisition of state-of-the-art technological components, and it seems that this crisis will continue for a long time. And, in the world of graphics cards, users have to contend with a crypto mining trend that, during 2021, led the conversation on Reddit.

More about: NVIDIA, Graphics Cards, Gpu and Cryptocurrencies.

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