Nvidia Wins Protracted Lawsuit Against Its Investors

ByTroy Morris

Mar 5, 2021

Over the past few years, we have seen many crypto lawsuits in the sector, which has attracted interest from all parties. Even though some have been decided in short frames of time, others have lingered on. A typical example is a recent protracted case between Ripple and the United Securities and Exchange Commission.

With the SEC still adamant that XRP can be classified as securities, the remittance coin firm claims that the coin lines along with other digital assets such as Ethereum and Bitcoin. In a relatively not public lawsuit from two years ago, Nvidia has been cleared of all charges brought against it by its investors.

The Judge said the investors cannot appeal the ruling

In the lawsuit that was first slammed on the chip-making company in 2019, the investors claim that Nvidia misled them by telling them they are getting returns from selling mining equipment. The investors claim that the company has been leaning heavily on the mining activities that it has always conducted on the side.


Buttressing their points, the investors claim that the firm has been able to recoup nothing less than $1 billion from their mining business. Giving his verdict, Judge Haywood Gilliam mentioned that mining on the side does not mean that they are acting recklessly with customer funds. The Judge went further to mention that the defendants had no right to request an appeal. Nvidia is seemingly popular amongst various crypto miners across the sector.

For instance, if a miner intends to begin to miner a digital asset, he should be able to get a computer that would solve various mathematical puzzles. To better their chances of getting their digital assets on time, miners have been advised to seek out mining equipment with very high power, just like Nvidia provides.

Investors claimed Nvidia failed to disclose its mining business

To say the least, Nvidia has been able to win over some core customers of various other companies that produce mining chips such as AMD. This is because the company is regarded as one that provides one of the most powerful tools for mining across the globe. The company recently attempted to venture fully into the mining world after it announced that it was planning to make mining-only equipment used for just crypto mining purposes.

But before this dream is actualized, Nvidia still has its fate hung on the performance of Bitcoin and other digital assets in the sector. Before the lawsuit, several investors of the company protested that the company refused to disclose the full proceeds that it is getting from the mining business that they claimed the company did.

The investors claimed that the business was worth nothing less than $1 billion and tying the crash that occurred in 2017 to the decline in fortunes of the Nvidia stock market. When they first appeared in court, the Judge mentioned that the case lacked vital evidence and the investors could do better in terms of getting facts to back up their case.


The information provided on this website should not be interpreted as financial or investment guidance and may not embody the perspectives of Forex Tools Trader or its contributors. Forex Tools Trader does not hold responsibility for any financial setbacks experienced due to the use of information provided on this website by its writers or patrons. It's essential to thoroughly investigate and make informed decisions before entering any financial commitments, particularly concerning third-party reviews, presales, and similar ventures. The content you are viewing may be sponsored content, read our full disclaimer to learn more.

Don't Miss Out!

Artificial Intelligence Trading Software

CypherMindHQ Trading Robot, OpenAI (ChatGPT4) Enabled - The Best AI Trading System Ever Created

Sign Up

Try Crypto Engine With a Trusted Broker