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Nvidia to Pay $5.5 Million in SEC Penalty for ‘Inadequate Cryptomining Disclosures’

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On Friday, the US Securities and Exchange Commission (SEC) said that Nvidia Corporation has agreed to pay $5.5 million (approximately Rs. 42 crores) to resolve civil claims that the technology corporation failed to disclose the effect of crypto mining on its gaming business properly.

In a statement and charging order, the SEC claimed that Nvidia failed to disclose that crypto mining constituted a “substantial factor” of revenue growth from sales of gaming processors in back-to-back quarters in fiscal 2018.

The company agreed to pay a $5.5 million civil penalty without admitting or denying the SEC’s allegations (roughly Rs. 42 crores). Nvidia’s representative in Santa Clara, California, refused to comment.

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According to the SEC, Nvidia’s processors became popular for cryptomining in 2018, which is the practice of earning cryptocurrency in return for confirming transactions on distributed ledgers. According to the regulator, Nvidia was aware of the information but failed to discuss it with investors.

According to the SEC, these omissions misled investors and analysts interested in learning more about the effect of cryptomining on Nvidia’s business.