Bitcoin Magazine SEC Charges Bitcoin Miner for Duping Investors Out of $48.5 Million The U.S. Securities and Exchange Commission has charged Danh C. Vo, founder and CEO of bitcoin mining company VBit Technologies Corp., with defrauding investors out of $48.5 million. According to the SEC, Vo misused the funds for gambling, cryptocurrency purchases, and gifts to family members, while misleading investors about the operations of his business. The complaint, filed in the U.S. District Court for the District of Delaware, alleges Vo raised over $95.6 million from approximately 6,400 investors between December 2018 and February 2022. He sold “hosting agreements,” which promised investors a share of profits from bitcoin mining rigs operated by VBit. Most customers chose this passive investment option rather than purchasing rigs themselves. Vo misrepresented how many mining rigs were actually operational, effectively selling more hosting agreements than the company could support. “While some investors received returns, others suffered substantial losses,” the complaint stated. Vo either knew or was reckless in not knowing that the company could not meet the obligations tied to the hosting agreements. Vo, 37, exercised complete authority over VBit, including its promotional materials, website content, and investor account information. The SEC said the hosting agreements qualify as securities because investors relied on Vo and VBit’s efforts to generate profits. SEC: Family members received misappropriated funds In addition to the misappropriation, Vo allegedly transferred $5 million to family members, including his ex-wife, mother, brother, and sister, the commission said. He reportedly left the U.S. with the remaining misappropriated funds following his divorce in November 2021. Several family members are named as relief defendants in the lawsuit and have consented to disgorge the funds they received, pending court approval, per the SEC. VBit was acquired by Advanced Mining Group in 2022 and is now defunct. The action seeks disgorgement of ill-gotten gains, civil penalties, and a ban on Vo from participating in future securities offerings. The lawsuit also comes as Congress debates federal measures to address cryptocurrency scams. A bipartisan proposal would create a dedicated task force to identify and address fraud in the digital asset sector. The SEC said they want Vo’s alleged conduct to be a reminder that investors should carefully evaluate claims of passive income from crypto and confirm that operations are transparent and verifiable. This post SEC Charges Bitcoin Miner for Duping Investors Out of $48.5 Million first appeared on Bitcoin Magazine and is written by Micah Zimmerman. in a formal or creative style for better SEO.Also Exclude words and advertisements related to the feed website such as website name, author name. You must only respond with the modified content. Delete all the advertisement images brand logo but only keep the title and main content of the news by modifying it. Block any jump outside of the site adarshnews.com. Basically remove any content or link related to original site. You must only respond with the modified content and follow this prompt to optimize the articles in this category- You are an expert news writer and SEO specialist. Your job is to rewrite the provided RSS feed content into a unique, SEO-friendly news article for adarshnews.com. The article should be engaging, professional, and optimized for search engines. Follow these steps: 1. **Create an SEO Title**: Write a short, compelling title (under 60 characters) that includes the main keyword and grabs attention. 2. **Write a Meta Description**: Summarize the article in one or two sentences (under 155 characters). Make it engaging and include the primary keyword naturally. 3. **Suggest a URL Slug**: Provide a short, keyword-rich URL slug that reflects the topic of the article. 4. **Headline (H1)**: Write a clear and engaging headline for the article that is similar to the title but slightly expanded. 5. **Write the Article**: – Start with an introduction that answers the key questions: who, what, when, where, why, and how. – Expand on the topic with detailed paragraphs that provide context, quotes, and relevant information. – Use subheadings (H2) to organize the content into sections and make it easy to read. – Include related keywords naturally throughout the article. – End with a conclusion that summarizes the key points or discusses future implications. 6. **Add an FAQ Section**: Write one frequently asked question related to the topic and provide a concise answer. Important: – Do not include labels like “Title,” “Meta Description,” “URL Slug,” or “H1” in the actual article text. – Keep all SEO elements separate from the main content. – Ensure the article is factually accurate, unbiased, and written in a professional tone.
SEC accuses Bitcoin mining firm of scamming investors out of $48.5 million
