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SEC Fines NVIDIA for Misrepresenting Impact of Mining on Company’s Business

ByLouis Adams

May 9, 2022 #mining
Reading time: < 1 minute

GPU maker NVIDIA has settled a dispute with the Securities and Exchange Commission (SEC), which has accused the company of misrepresenting profits from sales of products to miners.

Now, the company has agreed to pay a $5.5 million fine. According to the press release shared by the company:

“According to the SEC ruling, NVIDIA violated the Securities Act of 1933 and the disclosure provisions of the Securities and Exchange Act of 1934. The company did not provide adequate controls and disclosure procedures. Without acknowledging or denying the findings of the SEC, Nvidia agreed to a cease-and-desist order and a $5.5 million fine.”

According to the SEC, during several quarters of fiscal year 2018, NVIDIA did not disclose that sales of graphics cards to miners were the main driver of growth in the GPU-related business.

According to the SEC:

“In two Forms of 10-Qs for fiscal year 2018, NVIDIA reported significant revenue growth for its video game business. However, the company had information that the growth in sales in this direction is largely due to the mining of cryptocurrencies.”