Nvidia fined for cryptomine sales

NEW YORK — 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 that were produced and marketed for gaming.

Cryptocurrencies are extremely volatile and the U.S Securities and Exchange Commission said Friday that the Santa Clara, California, company did not disclose to investors in 2018 the potential future risks of such sales. The company also agreed to a cease-and-desist order, the SEC said.

Nvidia did not admit or deny the SEC’S findings, and declined to comment Friday. Cryptominers are compensated for verifying crypto transactions.