Nvidia to pay $ 5.5 million fine for cryptomining “inadequate disclosure”: SEC

Washington: Nvidia The company agreed to pay $ 5.5 million to settle civil charges that the tech firm did not adequately disclose the impact of cryptomining on its gaming business, the US Securities and Exchange Commission (SEC) said Friday.

In two consecutive quarters of fiscal 2018, Nvidia did not disclose that cryptomining was a “significant element” of its revenue growth from sales of chips designed for games, the SEC said in a statement and a debit order.

The company, which has neither admitted nor denied the SEC’s findings, agreed to pay a $ 5.5 million civil fine. A spokesperson for Nvidia, based in Santa Clara, California, declined to comment.

In 2018, Nvidia’s chips became popular for cryptomining, the process of obtaining cryptographic rewards in exchange for verifying transactions on distributed ledgers, the SEC said. The regulator said Nvidia knew of such information, but did not share it with investors.

These omissions have misled investors and analysts interested in understanding the impact of cryptomining on Nvidia’s business, the SEC said.

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