NVIDIA, 5.5 million fine for not being honest about the impact of cryptocurrencies

NVIDIA agreed to pay one fine of $ 5.5 million for not being honest about the number of video cards sold to cryptocurrency miners: the Securities and Exchange Commission, the body that oversees the transparency of listed companies and related operations, announced today. The SEC said the Santa Clara company provided misleading information to investors reporting a huge peak in turnover due to gaming, without specifying how much the world of mining has affected, which is much more volatile and unstable than that of video games.

By negotiating, NVIDIA can avoid being formally found guilty, but at least it promises it will perform better in the future. The whole process dates back to very first moments of the crypto mining boom: the SEC has in fact investigated the financial report for 2018. In 2017 there had been a notable spike in GPU sales attributable to mining caused by particularly favorable conditions and rewards of Ethereum, and already then, in unsuspecting pre- pandemic and pre-chip crisis, finding a video card to play in peace was a challenge. As we know, in the years to come, things have worsened considerably, despite the company’s attempts to stem the phenomenon by introducing the CMP line of dedicated GPUs, which proved to be a total failure.

To dispel any doubt, it’s not that the SEC cares about the wallets and peace of poor video game enthusiasts. She stepped in because the crypto sector is much more volatile than the gaming sector, so the growth reported by NVIDIA was not a particularly reliable indicator on the outlook for the future – in a nutshell, investing in the company was riskier than NVIDIA has publicly admitted. Among other things, the hypothesis then came true: due to one of the many collapses of the crypto sector towards the end of 2018, NVIDIA was forced to revise its revenue forecasts by as much as 500 million dollars, amid discontent (and much more concrete class action) of investors.

It is interesting to note that NVIDIA had mentioned the importance of crypto in other sectors in which it was involved, omitting it only in relation to GPUs: this detail according to the SEC is sufficient to demonstrate the intentionality on the part of the company. It is worth mentioning that all the newest GeForces arrive on the market with the so-called LHR (Lite Hash Rate) active: A function implemented at the BIOS level that intentionally slows down the speed of operations related to mining.

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