Nvidia Corporation has agreed to pay $5.5 million (roughly Rs. 42 crore) to resolve civil litigation that the technology firm did not properly disclose the implications of cryptomining on its gaming business, according to the US Securities and Exchange Commission (SEC).
Nvidia failed to disclose that cryptomining was a "significant measure" of its revenue growth from gaming sales, according to the SEC in a statement and charging order.
Nvidia, a Santa Clara, California company that did not disclose or deny the SEC''s findings, agreed to pay a civil fine of $5.5 million (approximately Rs. 42 crore). A spokesperson for the company declined to comment.
Nvidia''s chips became popular in 2018, according to the SEC, whereas collecting cryptocurrency rewards in exchange for verifying transactions on distributed ledgers. Nvidia was denied disclosure, although it did not share information with investors.
Those omissions prang investors and analysts who were interested in understanding the impact of cryptomining on Nvidia''s business, according to the SEC.
2022, Thomson Reuters