Nvidia Corporation has agreed to pay $5.5 million to settle a civil lawsuit that the tech company did not properly disclose the impact of crypto mining on its gaming business.
The US Securities and Exchange Commission (SEC) said Friday, May 6, for the fourth straight quarter of fiscal 2018, Nvidia failed to disclose that cryptomining was a "significant element" of its revenue growth from sales of chips designed for their games.
Nvidia, which neither acknowledges nor denies the SEC's findings, agreed to pay a $5.5 million civil fine. A spokesperson for Santa Clara, California-based Nvidia declined to comment.
In 2018, Nvidia chips became popular for crypto mining, the process of earning crypto rewards in exchange for verifying transactions on a distributed ledger, the SEC said. Regulators allege that Nvidia was aware of the information, but did not share it with investors.
The omission is misleading investors and analysts interested in understanding the impact crypto mining has on Nvidia's business, the SEC said.
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