Nvidia Accused of Trying to Discredit Ex-Employee in Crypto Mining Revenue Trial

Investors suing Nvidia have opposed a motion from the U.S. chipmaker that would shut out the testimony from an ex-employee.

AccessTimeIconAug 17, 2020 at 9:56 p.m. UTC
Updated Sep 14, 2021 at 9:44 a.m. UTC

Investors suing chipmaker giant Nvidia for allegedly misreporting the size of its crypto mining-related revenue have complained it is now trying to block key evidence from a former employee.

  • The group of shareholders said Thursday that Nvidia's lawyers had gotten the former employee, dubbed "FE 5," to "disavow" several key statements and is now pushing for the whole testimony to be thrown out of court.
  • Having first brought charges in December 2018, the lawsuit alleges Nvidia downplayed the quantity of graphics cards – specifically GeForce GPUs – it was selling to cryptocurrency mining operations in order to buoy the stock price.
  • Nvidia has denied the accusations, claiming plaintiffs "cherry-picked" the data.
  • FE 5 gave evidence for an amended complaint in mid-May that appeared to show the chipmaker's executive team, including founder and CEO Jensen Huang, was regularly updated with figures of GeForce GPUs being bought by crypto miners.
  • FE 5 was head of Nvidia's consumer marketing in South Asia for five years until 2019.
  • Nvidia's lawyers informed plaintiffs in June they had identified and contacted FE 5, who had responded saying he/she had spoken under the misapprehension it was for research into the semi-conductor industry and not as evidence for a trial against the company.
  • Plaintiff's lawyers said they had clearly identified themselves from the start, and argue FE 5 is now giving these allegedly false statements out of fear Nvidia could retaliate against her/him.
  • Plaintiffs are calling on the court to strike down Nvidia's motion to dismiss evidence partly on the basis federal courts have rejected attempts by defendants to discredit the testimony from former employees in the past.

Read the motion here:


Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Learn more about Consensus 2024, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.