U.S. SEC charges VBit CEO in Bitcoin (BTC) mining firm case

JH Kim

Summary

The U.S. SEC said it has charged the CEO of Bitcoin (BTC) mining firm VBit with embezzlement and the sale of unregistered securities.
VBit raised about $95.6 million, but the SEC said there were false explanations about the actual mining business structure and plans for the use of investor funds.
The SEC emphasized that the lawsuit aims at recovering investor losses and will serve as a warning against similar unregistered crypto asset investment products.

The U.S. Securities and Exchange Commission (SEC) has charged the CEO of Bitcoin (BTC) mining firm VBit with embezzlement and the sale of unregistered securities. The main allegations are that investor funds were used improperly and the business structure was misrepresented.

On the 18th (local time), crypto-focused media The Block reported that the SEC has charged VBit CEO Danh C. Vo with approximately $48.5 million in embezzlement and the sale of unregistered securities. The SEC pointed out that there was a significant gap between the mining business structure presented to investors and the actual operating practices.

According to the SEC, VBit raised more than $95.6 million from about 6,400 investors. However, it is alleged that the company provided false or misleading explanations about how the Bitcoin mining business was operated and how investor funds would be used, thereby deceiving investors.

The SEC reports that a substantial portion of the raised funds was used for purposes other than expanding or operating actual mining infrastructure. It says investors were led to believe they would receive steady mining returns.

VBit ceased operations after being acquired by Advanced Mining Group in 2022. Through this lawsuit, the SEC seeks to recover investor losses and to serve as a warning against similar unregistered crypto asset investment products.