Nvidia Corporation Agreed to Pay $5.5M for Improper Disclosure of Cryptocurrency Mining
Nvidia Corporation has agreed to pay $5.5 million to settle civil charges that the tech company failed to properly disclose the impact of crypto mining on its gaming business, the U.S. Securities and Exchange Commission (SEC) said Friday.
In consecutive quarters in fiscal 2018, Nvidia failed to disclose that crypto mining was a “major element” of its revenue growth from sales of chips designed for gaming, the SEC said in a statement and payment order.
The company, which did not admit or deny the SEC’s findings, agreed to pay a $5.5 million civil fine. A spokesperson for Santa Clara, California-based Nvidia declined to comment.
In 2018, Nvidia’s chips became popular for crypto mining, the process of obtaining crypto rewards in exchange for verifying transactions on distributed ledgers, the SEC said. The regulator claimed that Nvidia knew that information, but did not share it with investors.
Those omissions misled investors and analysts interested in understanding the impact of crypto mining on Nvidia’s business, the SEC said.
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