In accordance with MetaEra, on December 20 (UTC+8), the U.S. Securities and Exchange Commission (SEC) filed a lawsuit in the U.S. District Court for the State of Delaware against Bitcoin mining company VBit and its founder Danh Vo. The SEC alleges that between 2018 and 2022, VBit defrauded investors by selling more mining machine hosting agreements than the number of actual machines it owned, and misappropriated approximately $48 million in investor funds. The SEC claims that VBit's investment contracts met the Howey Test criteria for securities. According to the filing, investors' returns were allegedly tied to the performance of the larger VBit mining pool, and the more investors recruited, the greater the opportunity to earn more Bitcoin.
SEC Sues Bitcoin Mining Firm VBit for Alleged $48M Fraud
KuCoinFlashShare
Summary
The U.S. Securities and Exchange Commission (SEC) filed a lawsuit against Bitcoin mining firm VBit and founder Danh Vo in Delaware federal court. The SEC alleges VBit defrauded investors between 2018 and 2022 by overselling hosting agreements and misappropriating $48 million. The firm’s contracts, the SEC claims, qualify as securities under the Howey Test. Investors’ returns were allegedly tied to the VBit mining pool, with more recruits leading to higher Bitcoin gains. The case adds pressure on liquidity and crypto markets amid ongoing regulatory scrutiny. VBit has not yet responded to the allegations.
Source:Show original
Disclaimer: The information on this page may have been obtained from third parties and does not necessarily reflect the views or opinions of KuCoin. This content is provided for general informational purposes only, without any representation or warranty of any kind, nor shall it be construed as financial or investment advice. KuCoin shall not be liable for any errors or omissions, or for any outcomes resulting from the use of this information.
Investments in digital assets can be risky. Please carefully evaluate the risks of a product and your risk tolerance based on your own financial circumstances. For more information, please refer to our Terms of Use and Risk Disclosure.