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U.S. SEC Sues Bitcoin Miner VBit for $95.6M Fraud, Classifies Mining Contracts as Securities

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The U.S. SEC sued Bitcoin miner VBit and founder Danh C. Vo on December 17, alleging a $95.6 million fraud involving over 6,400 investors. The agency classified cloud mining contracts as securities under the Howey Test, fueling the securities vs commodities debate. VBit allegedly spent nearly half the funds on personal expenses, including luxury items and gambling. Vo fled to Vietnam in 2021. The case raises compliance concerns for mining firms and could impact the industry’s future, especially for smaller operators. The SEC also cited Countering the Financing of Terrorism as part of its enforcement priorities.
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