Nvidia will pay $5.5-million SEC penalty for ‘inadequate disclosure’ about cryptomining

The US Securities and Exchange Commission (SEC) said on Friday that Nvidia Corporation has agreed to pay $5.5 million (about Rs 42 crore) to settle civil charges that the technology firm has had on the effects of cryptomining on its gaming business. not properly disclosed.

In back-to-back quarters in fiscal 2018, Nvidia failed to disclose that cryptomining was a “significant element” of its revenue growth from sales of chips designed for gaming, the SEC said in a statement and charging order. said.

The firm, which did not accept or deny the SEC’s findings, agreed to pay a civil penalty of $5.5 million (about Rs 42 crore). A spokesperson for California-based Nvidia Santa Clara declined to comment.

In 2018, Nvidia’s chips became popular for cryptomining, the process of receiving crypto rewards in exchange for verifying transactions on a distributed ledger, the SEC said. The regulator alleged that Nvidia knew that information, but failed to share it with investors.

The SEC said those omissions misled investors and analysts who were interested in understanding the impact of cryptomining on Nvidia’s business.

© Thomson Reuters 2022

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