Nvidia Corporation has agreed to pay $5.5 million (about 42 crores) to settle civil charges that the tech company has not properly disclosed about the impact of crypto on its gaming business, the US Securities and Exchange Commission (SEC) said Friday.
In successive quarters of fiscal 2018, Nvidia failed to disclose that crypto was a “significant component” of its revenue growth from sales of chips designed for games, the SEC said in a statement and shipping order.
The company, which did not acknowledge or deny the SEC findings, agreed to pay a civil fine of $5.5 million (about Rs 42 crore). An Nvidia spokesperson in Santa Clara, California, declined to comment.
The SEC said Nvidia chips became popular in 2018 in the crypto space, the process of getting crypto rewards in exchange for verifying transactions on distributed ledgers. The regulator claimed that Nvidia was aware of this information, but failed to share it with investors.
The Securities and Exchange Commission said these omissions misled investors and analysts interested in understanding the impact of cryptocurrencies on Nvidia’s business.