A category-action lawsuit has been filed towards Nasdaq-listed bitcoin mining firm Bit Digital following current allegations of fraud.Based on a co
A category-action lawsuit has been filed towards Nasdaq-listed bitcoin mining firm Bit Digital following current allegations of fraud.
Based on a court docket doc filed within the Southern District Courtroom of New York on Thursday, the category motion seeks to get better damages for Bit Digital traders who made inventory purchases between Dec. 21, 2020 and Jan. 8, 2021.
Defendants allege the mining firm made false and/or deceptive statements and did not disclose the true extent of its mining operations, which it mentioned had 22,869 bitcoin machines in China, per the submitting.
On Tuesday, Bit Digital denied allegations of fraud introduced towards it by J Capital Analysis in a report that claimed the corporate has “tried to downplay the criminality” of its actions.
J Capital additionally alleged that the massive variety of mining machines reported by the corporate was “merely not attainable” after reportedly checking with its authorities contacts in China.
“Defendants’ [Bit Digital] optimistic statements concerning the Firm’s enterprise, operations, and prospects had been materially deceptive and/or lacked an inexpensive foundation,” the court docket submitting reads.
Bit Digital mentioned Tuesday that its mainland China mining operations are managed by XMAX Hong Kong, and all “utility payments and different bills” are paid to Hong Kong suppliers.
Bit Digital should reply inside a 60-day interval; failing to take action would convey a few default judgement for aid.
The agency’s shares (BTBT) have declined 2.15% Friday and are at present down 45% 12 months thus far.