After being accused of violating disclosure standards by misrepresenting the impact of cryptocurrency mining on its gaming business, Nvidia, the world’s largest graphics card manufacturer, has resolved claims with the US Securities and Exchange Commission.
The tech behemoth from Santa Clara, California, agreed to pay a $5.5 million fine without admitting or disputing the allegations.
Today we announced settled charges against NVIDIA Corporation for inadequate disclosures concerning the impact of cryptomining on the company’s gaming business.
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— U.S. Securities and Exchange Commission (@SECGov) May 6, 2022
According to the SEC‘s cease-and-desist action, the company ascribed its “material” revenue growth to its operations in 2018. Nvidia, on the other hand, omitted to note that cryptocurrency mining was the primary driver of increased GPU sales.
The company was intended to say that a highly volatile sector was driving its expansion. While the game developer acknowledged that surging crypto demand had an impact on other sections of its company, it made it appear as if it had little impact on gaming GPUs.
For years, the issue at the heart of the SEC‘s investigation of Nvidia has been known. A group of investors sued the GPU manufacturer in 2020, alleging that the company misled them about the nature of its business.
Nvidia reportedly left its investors unprepared for the devastating bear market that occurred in 2018, according to the lawsuit, by obscuring the share of its revenue obtained from crypto mining.
A federal district judge in California decided in Nvidia’s favor in March, finding that there was insufficient proof that the corporation tried to deceive investors.
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