Bit Digital (BTBT), a Bitcoin mining firm traded on the NASDAQ inventory trade, is the topic of a class-action lawsuit that alleges the corporate f
Bit Digital (BTBT), a Bitcoin mining firm traded on the NASDAQ inventory trade, is the topic of a class-action lawsuit that alleges the corporate fabricated the extent of its Bitcoin (BTC) mining operations.
In line with the lawsuit which was filed within the Southern District New York court docket on Jan. 20 by plaintiff Anthony Pauwels, Bit Digital misled traders and made materially false claims concerning the extent of their Bitcoin mining enterprise, inflicting vital monetary hurt for traders.
Particularly, the plaintiffs reference an investigative report by J Capital Analysis which claims Bit Digital merely lied about having Bitcoin mining farms in operation throughout China. The agency’s web site claims to have over 40,000 mining rigs at the moment in operation, exerting a hash fee of two,253 PH/s, having efficiently mined over 1,500 BTC for the reason that starting of 2020.
Nevertheless, researchers at J Capital say they contacted authorities officers within the Chinese language provinces through which Bit Digital claimed to function, solely to seek out that nobody had ever heard of them.
When J Capital’s analysis hit the information headlines, Bit Digital’s inventory worth plummeted 25%. From BTBT’s peak valuation of $29.27 in early January, the inventory worth has since fallen 44%, to the present valuation of round $16.
Bit Digital issued a response to the claims made by J Capital on Jan. 19, declaring that the corporate had filed all of its documentation with the Securities and Trade Fee, and had at all times sought to replace traders and regulators with correct information.
Nevertheless, the plaintiffs within the lawsuit towards Bit Digital say the agency’s government possession — CEO Min Hu and chief monetary officer Erke Huang — had been able to dictate the contents of any and all paperwork regarding the working of the enterprise:
“Due to their positions with the Firm, [Hu and Huang] possessed the ability and authority to regulate the contents of the Firm’s stories to the SEC, press releases and shows to securities analysts, cash and portfolio managers and institutional traders, i.e., the market.”
Pauwels seeks reparations for the 1,000 items of BTBT shares he bought at a worth of $21.81 per share on Dec. 12, 2020, in addition to some other compensatory damages, court docket charges and bills.
The plaintiff demanded a trial by jury. No authorized response has been made by Bit Digital right now, nor did the corporate reply to Cointelegraph’s request for remark.