NVIDIA Settles With The SEC To Pay $5.5M Over Crypto Mining Disclosure Issues

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The Securities and Exchange Commission (SEC) has reached a $5.5 million settlement with NVIDIA over the company’s alleged failure to disclose that crypto mining was a significant contributor to its 2018 revenue. The company also agreed to a cease-and-desist order based on violations of the Securities Act of 1933 and the Securities Exchange Act of 1934's disclosure requirements.

According to the SEC, throughout the fiscal year 2018, the company failed to disclose that crypto mining was the primary driver of sales of its graphics processing units (GPUs) advertised and developed for gaming.

The SEC stated,

“NVIDIA’s omissions of material information about the growth of its gaming business were misleading given that NVIDIA did make statements about how other parts of the company’s business were driven by demand for crypto, creating the impression that the company’s gaming business was not significantly affected by crypto mining.”

The SEC contends that NVIDIA’s disclosure failures deprived investors of critical information to evaluate the company’s business in a key market.

https://www.coindesk.com/business/2022/05/06/nvidia-failed-to-disclose-cryptomining-revenue-impact-in-2018-sec-says/