SEC Files Lawsuit Against Bitcoin Mining Firm VBit for Unregistered Securities Offering
The SEC has filed a lawsuit against Danh C Vo, founder of Philadelphia-based Bitcoin mining firm VBit, alleging the sale of unregistered securities through a hosting service that allowed customers to buy stakes in mining operations. According to the SEC, the hosting program offered periodic Bitcoin payments based on customers' shares of computing power, with VBit controlling and operating the mining rigs.
The regulatory body claims Vo misled investors by not operating enough mining rigs to fulfill the hosting agreements and further alleges he misappropriated $48.5 million of customer funds for purposes including buying cryptocurrency, gambling, and purchasing lavish gifts for family members.
The investigation into Vo and VBit dates back to 2021, and the case was pursued actively under the Trump-era SEC, marking continuity into the Biden administration's crypto regulation efforts. This lawsuit exemplifies ongoing regulatory scrutiny in the cryptocurrency sector.
Additionally, lawmakers have introduced a bipartisan bill to establish a federal task force aimed at identifying and eliminating crypto-related scams.
