nvidia reuters full 1580878240757

Nvidia to pay $ 5.5-million SEC penalty for ‘not disclosing enough’ about cryptomining

NS

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

The company, which did not accept or reject the SEC’s results, agreed to pay a $ 5.5 million (approximately Rs. 42 crore) civil penalty. An Nvidia spokeswoman for Santa Clara, California, declined to comment.

In 2018, Nvidia’s chips became known for cryptomining, the process of obtaining crypto rewards instead of verifying transactions on distributed ledgers, the SEC said. The regulator alleges that Nvidia knew the information but failed to share it with investors.

The SEC said the errors misled investors and analysts interested in understanding the impact of cryptocurrencies on Nvidia’s business.

© Thomson Reuters 2022


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