NVIDIA is fined $5.5 Million for hiding crypto mining profits.

Veny Cespedes West

The U.S. National Securities and Exchange Commission (SEC) fined NVIDIA for hiding information about the profits generated by the sale of its products to cryptocurrency miners.

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NVIDIA // Veny West For NewsBreak

What is crypto mining?

Cryptocurrencies do not have central authorship or banks as in the case of FIAT money, each payment or transfer is verified by a wide network of volunteer computers, which receive benefits in digital assets for completing complex mathematical calculation tasks, so it requires a lot of computing power.

NVIDIA is one of the leading brands in the graphics card market, largely used in the niche of video games, and for some years now in cryptocurrency mining. The brand has not stopped growing after the increase in sales of GPUs for use by miners, who are partly responsible for the low supply available to the general public.

Miners have used bots (programmed robots) and other techniques to buy graphics cards in large volumes, thus leaving gamers without this essential technology for video games. NVIDIA wanted to solve the problem in early 2021 by launching LOW HASH RATE (LHR) technology, a system that reduces mining power, making them less attractive to crypto miners, however, this did not work.

The SEC details that, in 2018, NVIDIA presented its partners with the financial reports of 2017 with remarkable growth in the sale of graphics cards. Knowing the data, investors wanted to know how much of the increase was related to the world of video games and what part corresponded to the niche of cryptocurrencies. NVIDIA confirmed that its sales increased for video games and not for cryptocurrencies.

NVIDIA’s disclosure failures deprived investors of critical information to evaluate the company’s business in a key market,” - Kristina Littman, Head of the Commission's Crypto Assets Unit.

In other sectors of the brand, NVIDIA did present the demand for crypto as a boost for its sales.

Disclaimer: The information provided in this section does not represent investment advice.

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Hello, I'm Veny West, a journalist in the crypto world. I deliver unbiased news with valuable information about the world of web3. ¡Pura Vida! ₿

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