CryptoPotato
CryptoPotato
  • Crypto News
  • Margin Trading
  • Guides
    • Bitcoin & Crypto Guides 101
    • Bitcoin For Beginners
    • Editorials
  • DeFi & NFT
  • Buy
  • Language
  • Crypto News
  • Bitcoin For Beginners
  • Cryptocurrency Guides 101
  • Editorials
  • Bitcoin & Crypto Margin Trading
  • DeFi & NFT News
  • Bitcoin Price Analysis
  • CryptoPotato Crypto Fund
  • Ethereum (ETH) Price Analysis
  • Ripple (XRP) Price Analysis
  • Market Updates
  • Interviews
  • Buy Bitcoin with Card
  • bitcoin
    BTC$23,085.00
  • ethereum
    ETH$1,696.10
    • Market Updates
    • BTC Analysis
    • ETH Analysis
    • XRP Analysis
    • Interviews
    • Opinions
    CryptoPotato
    CryptoPotato
    • Crypto News
    • Margin Trading
    • Guides
      • Bitcoin & Crypto Guides 101
      • Bitcoin For Beginners
      • Editorials
    • DeFi & NFT
    • Buy
    • Language
    • Crypto News
    • Bitcoin For Beginners
    • Cryptocurrency Guides 101
    • Editorials
    • Bitcoin & Crypto Margin Trading
    • DeFi & NFT News
    • Bitcoin Price Analysis
    • CryptoPotato Crypto Fund
    • Ethereum (ETH) Price Analysis
    • Ripple (XRP) Price Analysis
    • Market Updates
    • Interviews
    • Buy Bitcoin with Card
    Home » Crypto News » NASDAQ-Listed Bitcoin Mining Company Faces Lawsuit on Defrauding Investors

    NASDAQ-Listed Bitcoin Mining Company Faces Lawsuit on Defrauding Investors

    Author: Zhelyazko Zhelyazkov

    Last Updated Jan 24, 2021 @ 12:02

    The BTC mining company said it operates 22,869 bitcoin miners in China. Allegations stated it had deceived clients who made stock purchases from the firm.

    Bit Digital – a NASDAQ-listed company, is to face a class-action lawsuit. A recent report by J Capital Research alleged the Bitcoin mining firm in “fake cryptocurrency business.”

    Impossible to Operate 22,869 Bitcoin Miners in China

    Bitcoin mining company Bit Digital is facing a class-action lawsuit on allegations of fraud and misleading its clients.

    According to an official court document filed in the Southern District Court of New York on Thursday, by plaintiff Anthony Pauwels, the case seeks to recover damages for Bit Digital investors. The victims had made stock purchases from the BTC-mining firm between December 21, 2020, and January 8, 2021.

    The court statement dictated that the company had made “false and/or misleading statements” that it operates 22,869 bitcoin mining establishments in China.

    A January 11, 2021 report by J Capital Research alleged that such activity is “simply not possible” and that it has “verified with local governments supposedly hosting the BTBT mining operation that there are no bitcoin miners there.”

    ADVERTISEMENT

    The research firm stated that Bit Digital operates “a fake cryptocurrency business” that is “designed to steal funds from investors.”

    Documents on the case also claimed that Bit Digital has failed to display the true nature of its mining operations.

    False Allegations?

    On January 19, Bit Digital came out with a press release aiming to disprove the claims. It stated that the latter was “false accusations given to the marketplace” and that the company has filed all necessary documentation with the US Securities and Exchange Commission (SEC).

    Additionally, the statement asserted that the firm had always aimed to update investors and regulators with correct information on its mining operations.

    In the publication, the company said that in its third-quarter financial results published on December 18, 2020, it owned a total of 40,865 mining rigs. Some of those were located in establishments in Mongolia Province, Yunnan Province, Nebraska, and Texas.

    Bit Digital added that its operations in China had been managed by XMAX Hong Kong – its wholly-owned subsidiary in Hong Kong, which has handled all of the bitcoin mining operations in mainland China.

    The company has sixty days to officially respond to the allegations.

    SPECIAL OFFER (Sponsored)
    Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).

    PrimeXBT Special Offer: Use this link to register & enter POTATO50 code to receive up to $7,000 on your deposits.

    You Might Also Like:

    • decline_cover
      Canaan Sees Over 75% Decline in Net Revenue in Q3 as Bitcoin's Price Surge
    • bitcoin_miningrig_cover
      45,000 Bitcoin Mining Rigs Confiscated by Iranian Authorities Amid Blackout Controversy
    • BitcoinEthereumSquarePayPal
      PayPal and Square Are Buying Every New Mined Bitcoin... And More
    Tags: Bitcoin China Mining
    Enjoy reading? Share with your friends
    Facebook Twitter LinkedIn Telegram

    About The Author

    Zhelyazko Zhelyazkov
    More posts by this author

    Zhelyazko is a freelance writer whose interest in cryptocurrencies sparked in early 2017. Being a seasoned content creator with more than ten years of experience in the financial sector, he's into the informational flow 24/7. He holds a degree in English Philology. Contact Zhelyazko: LinkedIn

  • bitcoin
    BTC$23,085.00
  • ethereum
    ETH$1,696.10
  • Join Our Community

    FacebookTwitter YouTubeTelegram


    Editorials
    Users in Web3 Will Do a lot More Than Just Trade Crypto: Cronos’ Ken Timsit (Interview)

    Users in Web3 Will Do a lot More Than Just Trade Crypto: Cronos’ Ken Timsit (Interview)

    Institutions Are Starting to Buy Back: Interview with Nansen

    Institutions Are Starting to Buy Back: Interview with Nansen

    Top 5 Most Common Scams Related to Ethereum 2.0

    Top 5 Most Common Scams Related to Ethereum 2.0

    What is the Merge? What You Need to Know About the Transition to Ethereum 2.0

    What is the Merge? What You Need to Know About the Transition to Ethereum 2.0

    These are the Bear Market Benefits, and the Future of NFTs: DappRadar CEO (Interview)

    These are the Bear Market Benefits, and the Future of NFTs: DappRadar CEO (Interview)

    5 Common Mistakes to Avoid During a Crypto Bear Market

    5 Common Mistakes to Avoid During a Crypto Bear Market

    The Cardano Roadmap Eras Explained: Byron, Shelley, Goguen, Basho, and Voltaire

    The Cardano Roadmap Eras Explained: Byron, Shelley, Goguen, Basho, and Voltaire

    Join Our Newsletter
    Become a CryptoPotato VIP
    One Weekly Email Can Change Your Crypto Life.
    Sign-up FREE to receive our extended weekly market update and coin analysis report
    We NEVER send spam. You can unsubscribe at any time.
    Invalid email address
    Thanks for subscribing!
    Footer Logo
    About
    Advertise on CryptoPotato
    About Us | Contact Us | Careers

    Terms of service | Privacy Policy | GDPR
    More Sections
    IEO List | Evaluations
    Airdrops
    Scholarship
    Cannabis Stocks News | Market Analysis
    Disclaimer
    Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. Full disclaimer
    © Copyright CryptoPotato 2016 - 2021
    Scroll to top
    One Weekly Email Can Change Your Crypto Life.

    Sign-up FREE to receive our extended weekly market update and coin analysis report

    We never send SPAM. You can unsubscribe at any moment
    Invalid email address
    Thanks for subscribing!