Nvidia Fined Over Cryptomining Disclosures. This Week's Bitcoin and Crypto News

Our lead story this week is a Friday ruling from the US Securities and Exchange Commission that ordered Nvidia to pay a $5.5 million fine for what the SEC characterized as inadequately disclosing how much of the company's sales of graphics chips stemmed from cryptocurrency mining. 

We'll also cover an NFT sale that rocked the ethereum network, the expansion of the SEC's crypto enforcement unit, Wikipedia ending cryptocurrency donations, and Square Enix selling the Tomb Raider franchise to invest in blockchain and other technologies

The SEC said Friday that Nvidia didn't adequately disclose how cryptocurrency mining impacted its sales of graphics chips. According to an SEC release, "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."

Cryptocurrency mining often relies on higher-end graphics cards, like those used for video games, which some publications, like the BBC, PCMag and Tech Radar, have reported may be partly responsible for a graphics card shortage.

Bored Ape Yacht Club, owned by parent company Yuga Labs, is one of the better-known NFT collections. 

The BAYC brand is expanding into an online video game, and on Saturday, Yuga Labs released a collection of digital land grant NFTs to be used inside this game. Each NFT land grant sold for a little under $6,000.

Like most nonfungible tokens, Borred Ape Yacht Club NFTs are built on the ethereum blockchain. Transactions on ethereum come with fees, called gas fees. 

Gas fees increase as growth occurs in the number of people engaging in transactions at any given time.

The NFT land grants turned out to be so popular that gas fees skyrocketed and transactions became incredibly expensive. 

One person paid $44,000 in gas fees alone to buy two NFT land plots. In about three hours, Yuga Labs made around $320 million and sold 55,000 digital land plots. 


















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