Multinational technology firm Nvidia Corp. has agreed to pay a $5.5-million penalty after the Securities and Exchange Commission found non-disclosure of crypto mining activities in 2018.
NVDA is down 0.05%, while SPY is down 0.74%.
The SEC said Nvidia consented to a cease-and-desist order, along with a $5.5-million fine after an investigation conducted by Brent Wilner of the Crypto Assets and Cyber Unit.
The development comes as an investigation into the firm’s crypto mining activities during consecutive quarters in the fiscal year 2018, which the regulator said were not disclosed by the firm.
The SEC Crypto Assets and Cyber Unit Chief Kristina Littman said Nvidia’s failure to disclose deprived its investors of “critical information” to be able to evaluate the firm’s business in a key market.
The SEC also found that Nvidia’s omission of material information regarding its gaming business was misleading, as it disclosed how other units of its business were boosted by demand for cryptocurrencies.
The regulator found that Nvidia earlier reported an expansion in its gaming revenue but did not disclose that the increase was driven by crypto mining. It did not admit or deny the SEC findings.