SEC: Nvidia failed to disclose crypto as revenue generator
Associated Press
NEW YORK (AP) — Nvidia, a major tech company that has expanded aggressively into gaming, will pay a $5.5 million penalty for failing to disclose that cryptomining was a significant source of revenue growth from the sale of graphics processing units produced and marketed for gaming. Crypto currencies are extremely volatile and the U.S Securities and Exchange Commission said Friday that the company did not disclose the potential risks of such sales to investors. Cryptominers are compensated for verifying crypto transactions. As the crypto craze began to spread in 2017, Nvidia’s graphics processing units that were designed and marketed for gaming were increasingly used to mine cryptocurrency, according to the SEC, something investors should have been told.
