CoinVoice has recently learned that the U.S. Securities and Exchange Commission (SEC) has filed a lawsuit against Danh C. Vo, founder and CEO of the Bitcoin mining company VBit Technologies Corp., accusing him of embezzling 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 their Bitcoin mining business model and the use of funds in promotional materials. The SEC pointed out that Vo promoted a so-called 'custodial agreement' to investors, claiming it would provide ordinary investors with a solution to obtain passive mining income without managing equipment, but in reality, the number of custodial agreements sold far exceeded the actual operational scale of the company's mining machines. Regulators believe that Vo knowingly or recklessly made misleading statements to investors. Additionally, the SEC disclosed that Vo transferred about $5 million to his family and ex-spouse and left the U.S. in November 2021. The SEC has charged him with unregistered securities offerings and fraud. VBit was acquired in 2022, and related mining operations have since ceased.

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