SEC fines Nvidia for distorting data on mining’s impact on its business

The graphics processor maker Nvidia урегулировал a dispute with the U.S. Securities and Exchange Commission (SEC), which had accused the company of distorting data on profits from sales of graphics cards to miners. The company agreed to pay a $5.5 million penalty.

“According to the SEC order, Nvidia violated the Securities Act of 1933 and the disclosure provisions of the Securities Exchange Act of 1934. […] The company did not provide adequate controls or disclosure procedures. Not admitting or denying the SEC’s findings, Nvidia agreed to the cease-and-desist order and to pay a $5.5 million penalty,” the regulator’s press release states.

According to the SEC, over several quarters of the 2018 fiscal year Nvidia did not disclose that sales of graphics cards to miners were the primary driver of growth in its graphics processor business.

“In two Form 10-Q filings for 2018, Nvidia reported material growth in revenues from its gaming business. However, the company possessed information that the growth in this area was largely driven by cryptocurrency mining,” the SEC asserts.

The regulator says that by its actions the company misled investors about the state of the business. The Commission emphasised that all securities issuers are required to ensure “timely, complete and accurate disclosure.”

Earlier in March 2022, Nvidia won the case on a claim similar to the SEC’s allegations. Investors accused the company of distorting data on profits from sales of graphics cards to miners.

Read ForkLog’s Bitcoin news on our Telegram — crypto news, prices and analysis.