VBit Technologies Corp. Misleading Case

D. Delaware

Court

23-CV-00162

Case number

13 Apr 2023

Lead Plaintiff motion deadline

Investors were promised by VBit Technologies Corp individualized, specialized, cutting-edge computer technology touted by the Company as being capable of producing hefty returns. 
Investors never received from VBit Technologies Corp the individualized mining equipment and services that they paid for; rather, investments were pooled together with investments from other customers. 
The Bitcoins appearing in Investors' “virtual wallets” were mere investment returns arbitrarily determined by VBit Technologies Corp.
Investors/Customers suspect the Company and its Leaders violated the Securities Act by offering, selling, and soliciting unregistered securities.
In June 2022, Investors discovered that they were unable to make withdrawals of Bitcoin from their “virtual wallets,” which were located in an online dashboard hosted by the Company. 
In reality, the Investors' individual wallets appeared to have been a façade as the Company was not offering and maintaining individualized, hardware-hosted mining services to Investors as represented. 
Instead, the Company was engaged in “cloud mining,” or a similar arrangement whereby customers’ computing power – dubbed a “hash rate” – is pooled together and wholly unrelated to the physical products and services they are purportedly being sold. 
The Company’s activities have all the markings of a Ponzi scheme cloaked in technological sophistication. Moreover, the scheme has all the markings of a pyramid scheme as it was fueled with multi-level marketing, as customers were encouraged to recruit family, friends, and colleagues to become victims in exchange for purported rewards.

Case Status

Motion to dismiss

Alleged Offence

Mismanagement,

Misleading Statements,

Financial Misrepresentation,

Failure to Disclose,

Negligence,

Breach of Fiduciary duty,

Omissions

Suspected Party

Directors,

Management,

Service Provider

Security Type

Crypto Asset

Trade Direction

Long

Shock Event Date

13 February 2023

Filing date

13 February 2023

Lead Plaintiff Deadline

13 April 2023

VBit Technologies Corp. Misleading Case

Collecting participants…