Security News > 2022 > May > NVIDIA fined for failure to disclose cryptomining sales boost
The U.S. Securities and Exchange Commission announced Friday that it settled charges against multinational tech firm NVIDIA for "Inadequate disclosures" of cryptomining's impact on its gaming business.
Settled charges are linked to NVIDIA's failure to disclose that much of the company's gaming sales were boosted by cryptomining, with customers increasingly using NVIDIA GPUs to mine for cryptocurrency starting with 2017.
"The SEC's order finds that, during consecutive quarters in NVIDIA's fiscal year 2018, the company failed to disclose that cryptomining was a significant element of its material revenue growth from the sale of its graphics processing units designed and marketed for gaming," the SEC said.
Today we announced settled charges against NVIDIA Corporation for inadequate disclosures concerning the impact of cryptomining on the company's gaming business.
For violations of several sections in the Securities Act and the Exchange Act, the tech giant will have to pay a civil money penalty of $5,500,000 to the SEC. "Without admitting or denying the SEC's findings, NVIDIA agreed to a cease-and-desist order and to pay a $5.5 million penalty," the SEC said on Friday.
While analysts and investors were interested in understanding how much the company's gaming revenue was affected by cryptomining, NVIDIA did not disclose its massive impact in quarterly reports filed for the second and third fiscal quarters of 2018.