{"id":65077,"date":"2022-05-09T17:19:20","date_gmt":"2022-05-09T15:19:20","guid":{"rendered":"https:\/\/www.planet3dnow.de\/cms\/?p=65077"},"modified":"2022-05-09T17:19:20","modified_gmt":"2022-05-09T15:19:20","slug":"sec-charges-nvidia-corporation-with-inadequate-disclosures-about-impact-of-cryptomining","status":"publish","type":"post","link":"https:\/\/www.planet3dnow.de\/cms\/65077-sec-charges-nvidia-corporation-with-inadequate-disclosures-about-impact-of-cryptomining\/","title":{"rendered":"SEC<\/span> Charges NVIDIA<\/span> Corporation with Inadequate Disclosures about Impact of Cryptomining"},"content":{"rendered":"

Washing\u00adton D.C., May 6, 2022 \u2014 The Secu\u00adri\u00adties and Exch\u00adan\u00adge Com\u00admis\u00adsi\u00adon today announ\u00adced sett\u00adled char\u00adges against tech\u00adno\u00adlo\u00adgy com\u00adpa\u00adny NVIDIA<\/span> Cor\u00adpo\u00adra\u00adti\u00adon for ina\u00adde\u00adqua\u00adte dis\u00adclo\u00adsures con\u00adcer\u00adning the impact of cryp\u00adto\u00admi\u00adning on the company\u2019s gam\u00ading business.<\/p>\n

The SEC<\/span>\u2019s order finds that, during con\u00adse\u00adcu\u00adti\u00adve quar\u00adters in NVIDIA<\/span>\u2019s fis\u00adcal year 2018, the com\u00adpa\u00adny fai\u00adled to dis\u00adc\u00adlo\u00adse that cryp\u00adto\u00admi\u00adning was a signi\u00adfi\u00adcant ele\u00adment of its mate\u00adri\u00adal reve\u00adnue growth from the sale of its gra\u00adphics pro\u00adces\u00adsing units (GPUs) desi\u00adgned and mar\u00adke\u00adted for gam\u00ading. Cryp\u00adto\u00admi\u00adning is the pro\u00adcess of obtai\u00adning cryp\u00adto rewards in exch\u00adan\u00adge for veri\u00adfy\u00ading cryp\u00adto tran\u00adsac\u00adtions on dis\u00adtri\u00adbu\u00adted led\u00adgers. As demand for and inte\u00adrest in cryp\u00adto rose in 2017, NVIDIA<\/span> cus\u00adto\u00admers incre\u00adasing\u00adly used its gam\u00ading GPUs for cryptomining.<\/p>\n

In two of its Forms 10\u2011Q for its fis\u00adcal year 2018, NVIDIA<\/span> repor\u00adted mate\u00adri\u00adal growth in reve\u00adnue within its gam\u00ading busi\u00adness. NVIDIA<\/span> had infor\u00adma\u00adti\u00adon, howe\u00adver, that this increase in gam\u00ading sales was dri\u00adven in signi\u00adfi\u00adcant part by cryp\u00adto\u00admi\u00adning. Despi\u00adte this, NVIDIA<\/span> did not dis\u00adc\u00adlo\u00adse in its Forms 10\u2011Q, as it was requi\u00adred to do, the\u00adse signi\u00adfi\u00adcant ear\u00adnings and cash flow fluc\u00adtua\u00adtions rela\u00adted to a vola\u00adti\u00adle busi\u00adness for inves\u00adtors to ascer\u00adtain the likeli\u00adhood that past per\u00adfor\u00admance was indi\u00adca\u00adti\u00adve of future per\u00adfor\u00admance. The SEC<\/span>\u2019s order also finds that NVIDIA<\/span>\u2019s omis\u00adsi\u00adons of mate\u00adri\u00adal infor\u00adma\u00adti\u00adon about the growth of its gam\u00ading busi\u00adness were mis\u00adlea\u00adding given that NVIDIA<\/span> did make state\u00adments about how other parts of the company\u2019s busi\u00adness were dri\u00adven by demand for cryp\u00adto, crea\u00adting the impres\u00adsi\u00adon that the company\u2019s gam\u00ading busi\u00adness was not signi\u00adfi\u00adcant\u00adly affec\u00adted by cryptomining.<\/p>\n

\u201c<\/span>NVIDIA<\/span>\u2019s dis\u00adclo\u00adsure fail\u00adures depri\u00adved inves\u00adtors of cri\u00adti\u00adcal infor\u00adma\u00adti\u00adon to eva\u00adlua\u00adte the company\u2019s busi\u00adness in a key mar\u00adket,\u201d said Kris\u00adti\u00adna Litt\u00adman, Chief of the SEC<\/span> Enforce\u00adment Division\u2019s Cryp\u00adto Assets and Cyber Unit. \u201cAll issuers, inclu\u00adding tho\u00adse that pur\u00adsue oppor\u00adtu\u00adni\u00adties invol\u00adving emer\u00adging tech\u00adno\u00adlo\u00adgy, must ensu\u00adre that their dis\u00adclo\u00adsures are time\u00adly, com\u00adple\u00adte, and accurate.\u201d<\/p>\n

The SEC<\/span>\u2019s order finds that NVIDIA<\/span> vio\u00adla\u00adted Sec\u00adtion 17(a)(2) and (3) of the Secu\u00adri\u00adties Act of 1933 and the dis\u00adclo\u00adsure pro\u00advi\u00adsi\u00adons of the Secu\u00adri\u00adties Exch\u00adan\u00adge Act of 1934. The order also finds that NVIDIA<\/span> fai\u00adled to main\u00adtain ade\u00adqua\u00adte dis\u00adclo\u00adsure con\u00adtrols and pro\u00adce\u00addu\u00adres. Wit\u00adhout admit\u00adting or deny\u00ading the SEC<\/span>\u2019s fin\u00addings, NVIDIA<\/span> agreed to a cea\u00adse-and-desist order and to pay a $5.5 mil\u00adli\u00adon penalty.<\/p>\n

The SEC<\/span>\u2019s inves\u00adti\u00adga\u00adti\u00adon was con\u00adduc\u00adted by Brent Wil\u00adner of the Cryp\u00adto Assets and Cyber Unit, and super\u00advi\u00adsed by Dia\u00adna Tani and Ms. Litt\u00adman of the Cryp\u00adto Assets and Cyber Unit.<\/p>\n","protected":false},"excerpt":{"rendered":"

Washing\u00adton D.C., May 6, 2022 \u2014 The Secu\u00adri\u00adties and Exch\u00adan\u00adge Com\u00admis\u00adsi\u00adon today announ\u00adced sett\u00adled char\u00adges against tech\u00adno\u00adlo\u00adgy com\u00adpa\u00adny NVIDIA<\/span> Cor\u00adpo\u00adra\u00adti\u00adon for ina\u00adde\u00adqua\u00adte dis\u00adclo\u00adsures con\u00adcer\u00adning the impact of cryp\u00adto\u00admi\u00adning on the company\u2019s gam\u00ading business.<\/p>\n

The SEC<\/span>\u2019s order finds that, during con\u00adse\u00adcu\u00adti\u00adve quar\u00adters in NVIDIA<\/span>\u2019s fis\u00adcal year 2018, the com\u00adpa\u00adny fai\u00adled to dis\u00adc\u00adlo\u00adse that cryp\u00adto\u00admi\u00adning was a signi\u00adfi\u00adcant ele\u00adment of its mate\u00adri\u00adal reve\u00adnue growth from the sale of its gra\u00adphics pro\u00adces\u00adsing units (GPUs) desi\u00adgned and mar\u00adke\u00adted for gam\u00ading. Cryp\u00adto\u00admi\u00adning is the pro\u00adcess of obtai\u00adning cryp\u00adto rewards in exch\u00adan\u00adge for veri\u00adfy\u00ading cryp\u00adto tran\u00adsac\u00adtions on dis\u00adtri\u00adbu\u00adted led\u00adgers. As demand for and inte\u00adrest in cryp\u00adto rose in 2017, NVIDIA<\/span> cus\u00adto\u00admers incre\u00adasing\u00adly used its gam\u00ading GPUs for cryp\u00adto\u00admi\u00adning. (\u2026) Wei\u00adter\u00adle\u00adsen \u00bb<\/a><\/p>\n","protected":false},"author":593,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"wp_typography_post_enhancements_disabled":false,"ngg_post_thumbnail":0,"footnotes":""},"categories":[22],"tags":[2719,1365,992,2718],"class_list":["post-65077","post","type-post","status-publish","format-standard","hentry","category-pressemitteilungen","tag-crypto","tag-mining","tag-nvidia","tag-sec","entry"],"share_on_mastodon":{"url":"","error":""},"_links":{"self":[{"href":"https:\/\/www.planet3dnow.de\/cms\/wp-json\/wp\/v2\/posts\/65077","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.planet3dnow.de\/cms\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.planet3dnow.de\/cms\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.planet3dnow.de\/cms\/wp-json\/wp\/v2\/users\/593"}],"replies":[{"embeddable":true,"href":"https:\/\/www.planet3dnow.de\/cms\/wp-json\/wp\/v2\/comments?post=65077"}],"version-history":[{"count":1,"href":"https:\/\/www.planet3dnow.de\/cms\/wp-json\/wp\/v2\/posts\/65077\/revisions"}],"predecessor-version":[{"id":65078,"href":"https:\/\/www.planet3dnow.de\/cms\/wp-json\/wp\/v2\/posts\/65077\/revisions\/65078"}],"wp:attachment":[{"href":"https:\/\/www.planet3dnow.de\/cms\/wp-json\/wp\/v2\/media?parent=65077"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.planet3dnow.de\/cms\/wp-json\/wp\/v2\/categories?post=65077"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.planet3dnow.de\/cms\/wp-json\/wp\/v2\/tags?post=65077"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}