TechFlow news, December 18 — According to TheBlock, the U.S. Securities and Exchange Commission (SEC) has filed charges against Danh C. Vo, founder and CEO of bitcoin mining company VBit, alleging he misappropriated $48.5 million, some of which was used for gambling and purchasing gifts for family members.
According to a complaint filed Wednesday by the SEC in the U.S. District Court for the District of Delaware, 37-year-old Vo and VBit Technologies Corp. raised over $95.6 million from approximately 6,400 investors. The SEC alleges that Vo lied to investors about how his bitcoin mining operations functioned and how funds would be used.
The SEC said VBit sold far more hosted mining contracts than it had actual mining equipment operating. Vo transferred $5 million to family members and his former wife, who have also been named as defendants. In November 2021, Vo filed for divorce and left the United States with the remaining misappropriated funds.
VBit was acquired by Advanced Mining Group in 2022.
