Bit Digital, Inc. (BTBT) Securities Fraud Class Action:
The complaint alleges that Defendants misled investors about Bit Digital's business operations and prospects by concealing that the company exaggerated its bitcoin mining operation.
Investors allegedly began to learn the truth on Jan. 11, 2021, when market analyst J Capital Research issued a scathing report about the company, concluding that Bit Digital operates "a fake crypto currency business" "designed to steal funds from investors."
According to J Capital, "[t]he company reported at end Q3 2020 that it was operating 22,869 bitcoin miners in China," but that "is simply not possible" and "[w]e verified with local governments supposedly hosting the BTBT mining operation that there are no bitcoin miners there."
In response, the price of Bit Digital shares crashed lower.
Most recently, on Feb. 3, 2021 Bit Digital announced its chairwoman (Ping Liu) resigned, its CEO (Min Hu) was terminated, and its Chief Strategy Officer (Hong Yu) resigned.
"We're focused on investor losses and proving Bit Digital faked its business by falsely portraying itself as a player in bitcoin mining," said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you are a Bit Digital investor or have information that may assist our investigation, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Persons with non-public information regarding Bit Digital should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email mailto:[email protected].
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Contact: Reed Kathrein, 844-916-0895
SOURCE Hagens Berman Sobol Shapiro LLP