Nvidia will pay a $5.5 million fine for “inadequate disclosures” on cryptocurrency mining.
WASHINGTON The U.S. Securities and Exchange Commission (SEC) said that Nvidia Corporation (NVDA.O) has agreed to pay $5.5 million to resolve civil claims that the technology company did not adequately disclose the effect of cryptomining on its gaming business.In consecutive fiscal 2018 quarters, Nvidia failed to disclose that cryptomining contributed “significantly” to its revenue growth from sales of gaming-specific processors, the SEC stated in a statement and charging order.
The company, which neither admitted nor denied the SEC’s allegations, agreed to pay a $5.5 million civil penalty. Nvidia, headquartered in Santa Clara, California, refused to comment.
The SEC said that in 2018, Nvidia’s processors became popular for cryptomining, which is the process of receiving crypto payouts in return for confirming transactions on distributed ledgers. The regulator said that Nvidia was aware of the material but failed to tell investors.
The SEC said that these omissions misled investors and analysts interested in understanding the effect of cryptomining on Nvidia’s business.
