The U.S. SEC accuses VBit founder of misappropriating $48.5 million and committing fraud

The U.S. Securities and Exchange Commission (SEC) has filed a lawsuit against Danh C. Vo, the founder and CEO of Bitcoin mining company VBit Technologies Corp., accusing him of misappropriating approximately $48.5 million in a fraudulent investment scheme. SEC documents show that Vo and VBit raised over $95.6 million from about 6,400 investors and falsely described the Bitcoin mining business model and the use of funds in their promotions.

The SEC pointed out that Vo promoted a so-called "custodial agreement" to investors, claiming it would provide ordinary investors with a solution for earning passive mining income without managing equipment. However, the number of custodial agreements sold far exceeded the actual number of mining machines the company operated. The regulatory agency believes that Vo knowingly or recklessly made misleading statements to investors. Additionally, the SEC revealed that Vo transferred approximately $5 million to his family and ex-spouse and left the United States in November 2021. The SEC has charged him with unregistered securities offerings and fraud. VBit was acquired in 2022, and its related mining operations have since ceased.