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VBITTECH.FI
id: 584

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.
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
Collecting participants…

VBit Technologies

VBit Technologies sells bitcoin mining hardware and offers mining equipment hosting.

    Ticker
    VBITTECH.FI
    Sector
    Financial Services
    Industry
    Financial Services
    Country
    US
    Address
    Greater Philadelphia Area, Great Lakes, Northeastern US