Nvidia was fined $5.5 million over its alleged failure to provide the actual GPU sales to cryptocurrency miners.

The lawsuit claims Nvidia had misled investors when it reported an increase in revenue due to "gaming" but hid the extent to which its performance was based on the volatility of the cryptocurrency market.

Nvidia has accepted that it will pay $5.5 million to cover charges of concealing the number of graphics cards it offered to cryptocurrency miners in an agreement with the US Securities and Exchange Commission.

The settlement claims Nvidia has misled investors by claiming the growth in revenue as a result of "gaming" but hiding the extent to which its performance was based on the volatile cryptocurrency market.

Nvidia hasn't admitted to any wrongdoing in the course of the agreement. However, they have agreed to cease any illegal non-disclosure of information.

The company's financial statements for 2018 fiscal. It was reported that the US Securities and Exchange Commission observed that Nvidia experienced a significant increase in sales related to crypto mining in 2017, as the benefits of mining Ethereum rapidly increased.

The mining of crypto was widely reported as the cause of GPU shortage, and Nvidia created a new CMP line to mine to avoid gaming problems. However, Nvidia employees acknowledged that gaming GPUs were being offered to mining companies.

"The sales staff of the company particularly in China were able to report that they saw significant growth in the gaming GPUs' demand because of cryptocurrency mining." The Verge quoted the US regulator in its ruling.

“NVIDIA’s analysts and investors were interested in understanding the extent to which the company’s Gaming revenue was impacted by crypto mining and routinely asked senior management about the extent to which increases in gaming revenue during this time frame were driven by crypto mining,” the commission said.

Nvidia didn’t mention mining-related sales as a factor in the success of its gaming division.

It mentioned crypto as an important factor in other markets, suggesting to the commission that it was being deceptive deliberately.

Investor anxiety turned out to be well-founded as a crypto crash in late 2018 forced Nvidia to slash its quarterly earnings projections by a whopping $500 million and spurred a shareholder lawsuit.