The US Securities and Exchange Commission (SEC) has stated in a new lawsuit that some Bitcoin
The SEC filed the case in Delaware federal court against VBit and its founder, Danh Vo. The agency stated that the company misled investors and misused about $48 million between 2018 and 2022.
According to the complaint, VBit sold more hosting contracts than it actually owned mining machines.
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In its filing, the SEC argued that these contracts should be treated as securities under US law. It said that the agreements met the Howey test, which helps determine whether an investment falls under securities rules.
The agency explained that people who bought hosting contracts expected to earn income without having to mine themselves. The SEC said investors relied on VBit’s work to earn profits because they had no control over or access to the mining rigs.
The regulator also noted that VBit’s operations did not comply with industry standards. Investors could not check their machines or monitor their mining operations. The SEC said the company kept full control of the equipment and its use.
A key detail in the complaint was how VBit handled mining power. The company pooled the computing capacity into a single operation it managed. The SEC said this setup meant investors’ profits were linked to each other’s outcomes.
The SEC’s Trading and Markets Division recently explained how brokerage firms can hold tokenized stocks and bonds while staying within current investor protection rules. What did the agency say? Read the full story.
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