SEC Charges Bitcoin Miner for Duping Investors Out of $48.5 Million 

The U.S. Securities and Exchange Commission (SEC) has charged Danh C. Vo, founder and CEO of bitcoin mining company VBit Technologies Corp., with defrauding investors out of $48.5 million. Vo allegedly raised over $95.6 million from about 6,400 investors between 2018 and 2022 by selling "hosting agreements" that promised passive returns from VBit-operated mining rigs. The SEC claims Vo misused the funds for personal expenses, including gambling, cryptocurrency purchases, and gifts to family members, while misrepresenting the operational status of the mining rigs, effectively selling more agreements than the company could support. Some investors received returns, but others suffered substantial losses. Vo exercised complete control over the company's operations and promotional materials, leading the SEC to assert the agreements qualified as securities. Vo allegedly transferred $5 million to family members before leaving the U.S. VBit was acquired in 2022 and is now defunct. The SEC seeks disgorgement, civil penalties, and a ban on Vo from future securities offerings, using the case to remind investors to verify the transparency of crypto passive income claims.

(Source：Bitcoin Magazine)