Regulation

Bit Digital Mining Company Faces Lawsuits On Defrauding Investors

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The NASDAQ-listed Bit Digital mining company faces a lawsuit on defrauding investors after it said it operated 22,869 miners in China. The allegations stated that it deceived clients that made stock purchases from the company so let’s read more in today’s Bitcoin news.

Bit Digital is facing a class-action lawsuit and as reported by J Capital Research alleged the BTC mining firm is actually a fake company in the crypto business. the mining company is facing a lawsuit on allegations of fraud and misleading the clients. According to the court documents filed in the Southern District Court of New York by plaintiff Anthony Pauwels, they are aiming to recover damages for investors. The victims made stock purchases from the BTC-mining company between December 21 and 2020 as well as January 8 of this year. The court statement dictated that the company made fake statements that it operates 22,869 BTC mining establishments in China.

A report by J Capital Research alleged that this activity is simply not possible and that it has “verified with local governments supposedly hosting the BTBT mining operation that there are no BTC miners there.” The research company stated that Bit Digital operates a “fake crypto business which is designed to steal funds from investors.”  The documents on the case claimed that Bit Digital failed to show the true nature of the operations. The company then came out with a press release that disproved the claims and stated that the latter was “false accusations given to the marketplace” and that the company filed all necessary documentation with the US Securities and Exchange Commission.

Bitcoin Mining Difficulty Stays, btc, data

The statement also asserted that the company aimed to update investors and regulators with the correct info on the mining operations. In the publication, the company said that the third-quarter financial results showed the company owns 40,865 mining rigs. Some of these were located in the Yunnan Province, Mongolia Province, Texas, and Nebraska. Bit Digital continued saying that its operations in China was managed by XMAH Hong Kong which is a subsidiary in Hong Kong that handled all the BTC mining operations in mainland China. The company has sixty days to respond to these allegations.

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