TechFlow news, according to Zhitongcaijing, on January 11, U.S.-based short-selling firm J Capital Research (hereinafter "JCAP") released a short report targeting Chinese-American listed company Bit Digital (BTBT.US), formerly known as Golden Bull Limited, once dubbed the "first China auto loan stock."
JCAP alleges that Bit Digital raised $42 million illegally through its P2P lending operations. Additionally, the company's claimed $18.8 million investment in cryptocurrency mining is fraudulent—the purported seller of Bitcoin mining equipment denies any transactions with Bit Digital. Reports also indicate that XMAX, a Hong Kong-based company acquired by Bit Digital for its cryptocurrency operations, along with its cryptocurrency token XMX, are part of a scam. XMAX's crypto-related business has reportedly ceased operations since May last year.
Its predecessor, Golden Bull Limited, announced in September 2020 a rebranding to "Bit Digital, Inc." and changed its stock ticker from "DNJR" to "BTBT." Notably, in July 2019, 17 BTBT executives, including the then-CFO, were arrested in Shanghai, with five still currently imprisoned. The company's VIE structure has been formally charged with illegal fundraising, its bank accounts have been frozen, and it still owes $42 million in unpaid debts.
