US SEC accuses VBit Bitcoin mining company's founder of embezzling $48.5 million and committing fraud

Odaily Planet Daily reports that the U.S. Securities and Exchange Commission (SEC) has filed a lawsuit against Danh C. Vo, founder and CEO of Bitcoin mining company VBit Technologies Corp., accusing him of embezzling approximately $48.5 million in a fraudulent investment scheme. SEC documents show that Vo and VBit raised over $95.6 million from approximately 6,400 investors and falsely described the Bitcoin mining business model and the use of funds in their promotional materials. The SEC pointed out that Vo promoted a so-called “custody agreement,” claiming it could provide ordinary investors with a passive mining income solution without managing equipment, but in reality, the number of custody agreements sold far exceeded the company’s actual mining hardware operations. The regulatory agency believes that Vo, knowingly or recklessly, continued to make misleading statements to investors. Additionally, the SEC disclosed that Vo transferred about $5 million to family members and former spouses and left the United States in November 2021. The SEC has charged him with unregistered securities issuance and fraud. VBit was acquired in 2022, and its related mining operations have now ceased. (The Block)