Bit Digital was convicted of violating the securities law

  • Chinese mining provider suspected of fraud

  • The company’s shares plummeted 25%

  • Lawyers Calculate Potential Losses for Bit Digital Investors

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Bit Digital was convicted of violating the securities law

One of the largest suppliers of mining equipment was convicted of violating the securities law

The multi-million dollar mining equipment supplier Bit Digital was suspected of violating the securities law. This was announced in an official press release by the American law firm Hagens Berman.

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According to Hagens Berman, the company could have misled investors about its cryptocurrency mining activities. In particular, on January 11, 2021, the analytical company J Capital Research published a report, which claims that Bit Digital is running a “fake” cryptocurrency business “designed to steal funds from investors.” Bit Digital did not comment on the accusations at the time of writing..

Bit Digital was convicted of violating the securities law

Related factors

At the end of the third quarter of 2020, Bit Digital announced the use of 22,869 Bitcoin miners in China. However, according to J Capital Research, the manufacturer’s claims are not true. The company contacted local authorities and was unable to confirm the declared number of mining farms..

“We are calculating the losses of investors and finding out if Bit Digital could have faked their business,” said Reed Kathrein, partner of Hagens Berman leading the investigation..

The news of a potential securities law violation has already caused Bit Digital (BTBT) shares to plunge 25.05% to $ 18.76.

What Makes Hagens Berman’s Whistleblower Practice Different?

Market capitalization of the company decreased to $ 901 million.

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Last year, BeInCrypto reported that Bit Digital purchased over $ 13 million in bitcoin mining equipment in exchange for its own shares. A total of 17,996 miners were reported, including 7025 Antminer S17 +, 9110 Antminer T17, 195 Antminer S17E, 32 Antminer S17Pro, 105 Antminer S19Pro, 1429 Whatsminer M20S, 100 Whatsminer M31S.

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