GPU maker Nvidia has settled a dispute with the US Securities and Exchange Commission (SEC), which accused the company of misrepresenting profits from product sales to miners. The company agreed to pay a $5.5 million fine.

“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 has not provided adequate control and disclosure procedures. Without acknowledging or denying the SEC’s findings, Nvidia agreed to a cease and desist order and a $5.5 million fine,” the regulator said in a press release.

According to the SEC, for several quarters of fiscal 2018, Nvidia did not disclose that the sale of graphics cards to miners was the main driver of growth in its GPU-related business.

“In two Forms 10-Qs for fiscal 2018, Nvidia reported significant revenue growth for its video game business. However, the company had information that the increase in sales in this direction was largely due to cryptocurrency mining, ”says the SEC.

The regulator believes that the company’s actions mislead investors about the state of the business. The Commission stressed that all issuers of securities must ensure “timely, complete and accurate disclosure of information”.

Recall that in March 2022, Nvidia won a lawsuit similar to the one filed by the SEC. Investors accused the company of misrepresenting earnings from video card sales to miners.