Nvidia will pay a $5.5 million SEC fine for ‘inadequate disclosures’ over crypto mining

Nvidia failed to disclose that crypto mining accounted for a “significant element” of its revenue growth from gaming processor sales.

The US Securities and Exchange Commission (SEC) said on Friday that Nvidia Corporation has agreed to pay $5.5 million (approximately Rs. 42 crores) to settle civil claims that the technology corporation failed to properly disclose the impact of crypto mining on its gaming business.

The SEC claimed in a statement and charging order that Nvidia failed to disclose that crypto mining was a “significant element” of its revenue increase from sales of gaming processors in back-to-back quarters in fiscal 2018.

The company, which did neither confirm or refute the SEC’s findings, agreed to pay a $5.5 million civil penalty (roughly Rs. 42 crores). Nvidia’s representative in Santa Clara, California, declined to comment.

According to the SEC, Nvidia’s processors became popular for crypto mining in 2018, which is the practice of receiving crypto rewards in exchange for authenticating transactions on distributed ledgers. The regulator claimed that Nvidia was aware of the material but did not discuss it with investors.

According to the SEC, these omissions misled investors and analysts who were interested in understanding the impact of crypto mining on Nvidia’s business.

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