Stock Groups

Nvidia to pay $5.5 million penalty for ‘inadequate disclosures’ about cryptomining -SEC -Breaking

[ad_1]

© Reuters. FILEPHOTO: Nvidia’s logo can be seen at Santa Clara headquarters, California. February 11, 2015. REUTERS/Robert Galbraith/File Photo

WASHINGTON, (Reuters) – Nvidia Corporation (NASDAQ:) has paid $5.5 Million to resolve civil charges against the company for failing to disclose the effects of cryptomining to its gaming business. The U.S Securities and Exchange Commission (SEC) announced Friday that they had reached an agreement to pay the money.

Nvidia did not disclose cryptomining as a significant element of its revenue growth in back-to-back fiscal 2018, despite possessing information showing that the rise in gaming sales was partly due to it. The SEC stated in a statement that the company had failed to make this disclosure, and issued a charging order.

According to the SEC, Nvidia did not disclose any material information. This misled analysts as well as investors interested in understanding the effect of cryptomining.

Although the firm did not deny or admit to any of the findings by SEC, it agreed to pay $5.5 million civil penalties. Nvidia’s spokesperson did not immediately respond to a request for comment.

According to the SEC, cryptomining refers to the practice of mining crypto currencies in return for verifying transactions on distributed ledgers.

[ad_2]