SEC Takes Action Against VBit Technologies for Alleged Fraud in Bitcoin Mining Scheme

Federal regulators are intensifying their scrutiny of crypto investment schemes, particularly focusing on alleged fraud related to bitcoin mining that reportedly misled thousands of investors and raised nearly 100 million. The U.S. Securities and Exchange Commission SEC has charged Danh C. Vo, the founder and CEO of VBit Technologies Corp., with fraud concerning a bitcoin mining business.
The SEC s civil complaint details how Vo raised over 95.6 million from approximately 6,400 investors through a venture known as VBit. Central to this scheme were Hosting Agreements that were marketed as a means to earn passive income from bitcoin mining. However, the regulator highlights significant misrepresentations regarding the scale of operations and the allocation of investor funds.
The complaint further alleges that Vo misappropriated 48.5 million from investors and used large sums of the misappropriated funds for gambling and gifts to family members before he fled the United States
the SEC added. These claims suggest that investors were deceived about both the operational capacity and the management of their finances.
Filed in federal court in Delaware, the SEC s action cites violations of multiple sections of the Securities Act of 1933 and the Securities Exchange Act of 1934. The commission is seeking permanent injunctions, disgorgement with prejudgment interest, civil penalties, and a bar on Vo serving as an officer or director. Additionally, several of Vo s family members have been named as relief defendants due to their alleged receipt of ill-gotten gains and have agreed to final judgments requiring repayment, pending court approval.
This case highlights the increasing regulatory oversight of crypto-related offerings. In contrast, legitimate bitcoin mining businesses typically prioritize transparent disclosures, verifiable infrastructure, and an awareness of operational risks over promises of fixed or passive returns.